TSMC sales beat estimates in boost for AI’s outlook in 2025
Published On Jan 10, 2025, 1:54 AM
Taiwan Semiconductor Manufacturing Co. (TSMC) reported a strong quarterly sales increase, surpassing expectations with a revenue of NT$868.5 billion (approximately $26.3 billion) for the October-December period, marking a 39% growth year-over-year. This growth is attributed to significant demand from AI-related hardware spending, especially from major tech companies like Nvidia and Apple. Analysts predict continued growth into 2025, influenced by the ongoing expansion of AI capabilities and the need for data centers. However, there are concerns about market oversupply and the sustainability of this growth as the industry faces geopolitical risks and dependence on major clients like Apple.
Stock Forecasts
TSM
Positive
TSMC's solid sales performance and optimistic outlook due to strong demand from AI-related sectors suggest that the company should continue to see growth in revenues and possibly margins. While there are concerns over market saturation and geopolitical tensions impacting major clients, TSMC's position as a key supplier for AI-related technology may buffer it from short-term upheavals. Overall, TSMC appears well-positioned for continued positive growth amid increasing AI investments.
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