In December, Taiwan Semiconductor's sales amounted to 278.16 billion New Taiwan dollars, a month-on-month increase of 0.8% and a year-on-year increase of 57.8%. From January to December 2024, Taiwan Semiconductor's operating revenue was 2,894.31 billion New Taiwan dollars, a 33.9% increase compared to the same period in 2023.
$Taiwan Semiconductor (TSM.US)$ December sales exceeded expectations, boosting the AI prospects for 2025. As of the time of writing, Taiwan Semiconductor has risen over 2% in after-hours trading.
On January 10, Taiwan Semiconductor announced its December sales figures. Taiwan Semiconductor's December sales reached 278.16 billion New Taiwan dollars, a month-on-month increase of 0.8% and a year-on-year increase of 57.8%.
From January to December 2024, Taiwan Semiconductor's operating revenue was 2.89 trillion New Taiwan Dollars, an increase of 33.9% compared to the same period in 2023.
During the period from October to December, the company's revenue reached 868.5 billion New Taiwan dollars (approximately 26.3 billion USD), a year-on-year increase of 39%, exceeding the average analyst expectation of 854.7 billion New Taiwan dollars.
As a chip foundry for technology giants like NVIDIA and Apple, Taiwan Semiconductor's performance growth reflects the active investment of companies like Alphabet and Microsoft in the field of AI. Since the emergence of ChatGPT, Taiwan Semiconductor's stock price has doubled, and its Market Cap has surpassed one trillion dollars, indicating that AI is driving the Semiconductors Industry into a new phase of rapid development. Meanwhile, companies like Hon Hai Precision are also benefiting from the growth in demand for AI Hardware, while Microsoft plans to invest heavily in building Datacenters.
However, there are also concerns in the market. Overbuilding and electrical shortages may become bottlenecks to development. Additionally, the lack of killer AI applications could lead to underutilization of Server capacity. Aside from NVIDIA and the AI sector, Taiwan Semiconductor also faces uncertainties in the Global Technology market and geopolitical issues. Nevertheless, Taiwan Semiconductor's gross margin is expected to reach new heights.
Morgan Stanley predicts that due to seasonal impacts from the iPhone, Taiwan Semiconductor's revenue in the first quarter may decline by 5%. Nevertheless, the company expects annual revenue to still grow, although the growth rate may be below 20%. Analyst Charlie Chan stated that Taiwan Semiconductor usually adopts a conservative performance outlook.
Analysts believe that investors should focus on four aspects in the upcoming Earnings Reports conference call: how the expansion of CoWoS advanced packaging capacity will affect future demand for AI Chips; whether the capacity increase of the Arizona wafer factory in the USA can meet the needs of companies like Apple and NVIDIA; whether the weakening demand for mature nodes will put pressure on profits; and whether the capital expenditure plan for 2025 reflects Taiwan Semiconductor's confidence in the N2 node.
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Editor/Somer