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Taiwan Semiconductor Manufacturing Company (NYSE:TSM) gains 5.48% to $218.14 as of 12:11 PM ET, following stronger-than-expected fourth-quarter earnings.
TSMC reports record quarterly net income of NT$374.68 billion ($11.3 billion) on net revenue of NT$868.46 billion ($26.36 billion) for the quarter ended December 31. Revenue climbs 38.8% year over year, while net income jumps 57%, driven by strong 3-nanometer and 5-nanometer chip demand. Advanced 3nm chips contribute 26% of wafer revenue, while 5nm chips account for 34%. AI accelerators made up mid-teens percent of total revenue in 2024, CEO C.C. Wei says.
For Q1 2025, TSMC expects revenue between $25 billion and $25.8 billion, ahead of analyst estimates of $24.4 billion. TSMC's Arizona fab entered high-volume production in Q4 2024 using 4nm technology, with yields comparable to its Taiwan plants. The company remains on track with its second and third Arizona fabs, Wei confirms.
This article first appeared on GuruFocus.