TSMC Sales Beat Estimates in Boost for AI’s Outlook in 2025

Taiwan Semiconductor Manufacturing Co.’s quarterly sales topped estimates, reinforcing investor hopes that the torrid pace of AI hardware spending will extend into 2025.

The go-to chipmaker for Nvidia Corp. and Apple Inc. reported a 39% rise in October-December revenue to NT$868.5 billion ($26.3 billion), based on calculations off monthly disclosures. That compares with an average estimate of NT$854.7 billion.

The strong showing from Taiwan’s largest company bolsters expectations that big tech companies from Alphabet Inc. to Microsoft Corp. will continue to build and upgrade datacenters at a rapid clip to propel AI development. This month, AI server maker Hon Hai Precision Industry Co. reported better-than-expected sales, while Microsoft outlined plans to spend $80 billion this fiscal year on datacenters.

Growth accelerated for TSMC in December, capping 34% revenue growth for 2024. That compares with TSMC’s official target of a 30% annual rise, though that outlook was expressed in US dollar terms. The world’s largest maker of advanced chips has been one of the biggest beneficiaries of a global race to develop artificial intelligence.

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