TSMC Rips as Revenue & Profit Recover

Chip demand is back, folks—how far can we ride this AI boom?

BREAKING NEWS

After a tough 6 months, the Taiwan Semiconductor Company is poised to reclaim their summer highs and truly capitalize on the AI revolution. Markets are buzzing after the company posted a massive earnings beat. 

WHAT HAPPENED

TSMC finally put demand concerns to bed by generating ~$7.5 billion in net income from ~$19.6 billion in revenue. This means TSMC just barely beat the top end of their own guidance for Q4. Investors had braced for a significant revenue decline here thanks to lagging demand for lower-powered chips, but TSMC revenue only fell 1.5% YoY. 

SURGING DEMAND

But the main reason TSMC is on the rise today is because the firm now expects upwards of 20% revenue growth in 2024. TSMC is rapidly expanding production for their most advanced AI chips, but demand for less powerful architecture is now recovering. With Samsung kicking off the in-device AI wars yesterday with an NPU-powered Galaxy S24 phone—demand for new processors looks ready to pop. 

WHY IT MATTERS

2023 was a tough year as TSMC tried to keep up with high-end demand while costs still weighed them down. This earnings report is a strong indicator of how real and how massive the AI boom is going to continue to be in 2024. TSMC stock rose over 8% in early trading.