TSMC's fourth-quarter profit expected to surge 58% due to strong demand for AI chips

From Investing.com: 2025-01-13 00:20:31

Taiwan Semiconductor Manufacturing Co is expected to report a 58% increase in fourth-quarter profit due to rising demand for advanced chips used in AI applications. The company faces challenges from US tech restrictions on China and potential import tariffs under the new administration. TSMC is projected to have a net profit of T$377.95 billion.

The estimate is significantly higher than the previous year’s fourth-quarter profit of T$238.7 billion. TSMC recently reported a strong fourth-quarter revenue, exceeding market expectations. The company’s growth is largely driven by AI customers, with a major investment in new factories in Arizona. The impact of potential tariffs and US government relations will be key factors for TSMC’s future performance.

TSMC’s earnings call will update its outlook for the current quarter and the full year, including planned capital expenditure to expand production. Despite uncertainties, the AI boom has boosted TSMC’s stock price by 81% in 2023, outperforming the broader market. The company’s strategic investments and position in the AI market will be crucial for its future success.



Read more at Investing.com: TSMC fourth-quarter profit seen jumping 58% on strong AI chip demand By Reuters