Taiwan Semiconductor Manufacturing Co. (TSM) has reported record annual revenue that exceeded Wall Street estimates as demand for artificial intelligence (A.I). microchips grows.
For the fourth quarter of 2024, the world’s biggest chip manufacturer reported revenue of 868.5 billion New Taiwan dollars ($26.3 billion U.S.), which was up nearly 40% from a year ago.
The fourth-quarter sales beat Refinitiv consensus estimates of 850.1 billion New Taiwan dollars.
For all of last year, TSMC’s revenue totaled 2.9 trillion New Taiwan Dollars, its highest annual sales since going public back in 1994.
TSMC, as the company is commonly known, manufacturers semiconductors for some of the world’s biggest companies, including Apple (AAPL) and Nvidia (NVDA).
TSMC is seen as the most advanced chipmaker in the world, given its ability to manufacture cutting-edge semiconductors, microchips and processors.
The company is getting a boost from strong demand for A.I. microchips, particularly from Nvidia, as well as semiconductors used in smartphones.
A.I. graphics processing units (GPUs), such as those designed by Nvidia, and other artificial intelligence microchips are expected to continue driving demand and revenue at TSMC.
TSMC’s latest results also help to bolster the case that demand for A.I. chips and services is far from fading and will continue throughout 2025 and beyond, say analysts.
The stock of TSMC has risen 105% over the last 12 months to trade at $207.12 U.S. per share.
