TSMC reports strong Q4 earnings beat driven by high demand for AI-related chips

From Zacks Investment Research: 2025-01-17 12:08:07

Taiwan Semiconductor Manufacturing reported strong Q4 2024 results, beating estimates for both top and bottom lines due to high demand for advanced chips used in AI applications. The company offered a bullish outlook for AI demand. Earnings per ADR were $2.24, a 57% increase YoY, with revenues up 37% to $26.9 billion. TSMC’s high-performance computing division, including AI and 5G applications, drove sales. Management expects AI accelerators to drive high-performance computing growth. For Q1 2025, revenue is expected to be $25-$25.8 billion. TSM is benefiting from the global AI boom and advanced chip adoption, with 5nm wafer accounting for 57% of revenues.

Investors can consider ETFs with the largest allocation to Taiwan Semiconductor, such as SP Funds S&P World ex-US ETF, SP Funds S&P Global Technology ETF, VanEck Vectors Semiconductor ETF, Matthews Emerging Markets ex China Active ETF, and Global X Emerging Markets ex-China ETF. SPWO holds 383 stocks, with TSM at 17.5%. SPTE follows the S&P Global 1200 Shariah Information Technology (Sector) Capped index. SMH holds 26 stocks and TSM is the second largest holding at 12.6%. MEMX seeks alpha in Global Emerging Markets ex China, with TSM as the top holding at 15.2%. EMM invests in emerging market companies, excluding China, with TSM at a 10.5% share.



Read more at Zacks Investment Research: AI Powers TSMC’s Q4 Earnings Beat: ETFs to Tap – January 17, 2025