TSMC beats gross sales estimates as AI chip enhance continues

Taiwan Semiconductor Manufacturing Co. posted December quarter income that topped analyst estimates, as the corporate continues to get a lift from the AI increase.

The world’s largest chip producer reported fourth-quarter income of 868.5 billion New Taiwan {dollars} ($26.3 billion), in accordance with CNBC calculations, up 38.8% year-on-year.

That beat Refinitiv consensus estimates of 850.1 billion New Taiwan {dollars}.

For 2024, TSMC’s income totaled 2.9 trillion New Taiwan {Dollars}, its highest annual gross sales since going public in 1994.

TSMC producers semiconductors for among the world’s greatest corporations, together with Apple and Nvidia.

TSMC is seen as essentially the most superior chipmaker on this planet, given its capacity to fabricate modern semiconductors. The corporate has been helped alongside by the sturdy demand for AI chips, significantly from Nvidia, in addition to ever-improving smartphone semiconductors.

“TSMC has benefited considerably from the sturdy demand for AI,” Brady Wang, affiliate director at Counterpoint Analysis informed CNBC.

Wang stated “capability utilization” for TSMC’s 3 nanometer and 5 nanometer processes — essentially the most superior chips — “has constantly exceeded 100%.”

AI graphics processing models (GPUs), resembling these designed by Nvidia, and different synthetic intelligence chips are driving this demand, Wang stated.

Taiwan-listed shares of TSMC have risen 88% over the past 12 months.

TSMC’s newest gross sales figures may give hope to traders that the the demand for synthetic intelligence chips and providers could proceed into 2025.

Foxconn, which assembles Apple’s iPhones, reported its highest-ever fourth quarter income this week, because it notched sturdy demand for AI servers.

In the meantime, Microsoft this month stated that it plans to spend $80 billion in its fiscal yr to June on the development of knowledge facilities that may deal with synthetic intelligence workloads.

CNBC’s Jordan Novet contributed to this report.