TSMC Expects 58% Profit Increase in Q4

Taiwan Semiconductor Manufacturing Co. (TSMC) is poised to report a 58% increase in fourth-quarter profit, reaching T$377.95 billion ($11.41 billion), driven by robust demand for AI chips, particularly from major clients like Apple and Nvidia. The company has seen significant revenue growth, with a 57.8% year-on-year increase in December alone, and is projected to maintain strong performance in 2025, largely fueled by AI-related customers. However, TSMC faces challenges from U.S. technology restrictions on China and potential tariffs from President-elect Trump’s administration, which could impact its operations. Despite these headwinds, TSMC is investing heavily in U.S. infrastructure, committing $65 billion to build three plants in Arizona, while still maintaining most production in Taiwan. The company’s stock has performed well, increasing 81% over the past year, significantly outpacing the broader market. TSMC is expected to provide further revenue forecasts during its upcoming earnings call.