Taiwan Semiconductor Manufacturing Co. (TSMC), the leading global producer of advanced AI-related chips, is poised to report a 58% increase in fourth-quarter profit, driven by robust demand for artificial intelligence applications. Key highlights include:
Profit and Revenue Expectations

Estimated Profit: TSMC is projected to report a net profit of T$377.95 billion ($11.41 billion) for Q4 2024, up from T$238.7 billion in the same period the previous year.
Strong Revenue Growth: Fourth-quarter revenue, reported earlier in Taiwan dollars, exceeded market expectations. TSMC will share its U.S. dollar revenue outlook during its quarterly earnings call.

AI as a Growth Driver

TSMC’s growth is heavily influenced by the rise of AI, with customers like Apple and Nvidia leading demand.
Analysts anticipate 2025 will continue to see TSMC’s expansion fueled by AI-driven applications.

Challenges and Opportunities

Geopolitical Challenges: The company faces hurdles from U.S. technology restrictions on China and uncertainties surrounding policy changes under new administrations.
Overseas Investments: TSMC is investing $65 billion in its Arizona fab cluster, marking the largest foreign direct investment project in the U.S., alongside other international ventures.

Analyst Insights
Brett Simpson from Arete Research suggests optimism about TSMC’s relationship with U.S. policymakers, emphasizing the potential strategic importance of its investments in the United States.
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