TSMC's fourth-quarter earnings exceed expectations, with net profit increasing by 57% due to strong demand for AI chips.

• The company's December-quarter revenue and profit surpassed analyst predictions due to the growing demand for AI technology.
• In the December quarter, TSMC's revenue increased by 38.8% compared to the previous year, reaching NT$868.46 billion, while its net income also increased by 57.0% to NT$374.68 billion.

The revenue and profit of Taiwan Semiconductor Manufacturing Company exceeded expectations in the fourth quarter, due to the increasing demand for advanced chips used in AI applications.

Here are TSMC's fourth-quarter results versus LSEG consensus estimates:

• The actual net revenue was NT$868.46 billion, which exceeded the expected NT$850.08 billion.
• Net income: NT$374.68 billion, vs. NT$366.61 billion expected

In the December quarter, TSMC's revenue increased by 38.8% compared to the previous year, and their net income also increased by 57%.

The company predicted its fourth-quarter revenue to be between $26.1 billion and $26.9 billion.

The world's largest contract chip manufacturer, TSMC, produces advanced processors for clients such as Nvidia and Apple and has gained from the trend towards AI.

Since the company went public in 1994, its annual sales have reached a record-breaking NT$ 2.9 trillion, with the December revenue being released last week.

In 2025, the company may encounter challenges due to U.S. export restrictions on China and the uncertainty surrounding President-elect Donald Trump's trade policies, which include the possibility of imposing broad tariffs and accusing Taiwan of stealing the U.S. chip industry.

In 2024, Taiwan-listed shares of TSMC experienced a 81% increase and were trading 3.75% higher on Thursday.