Financial Report Outlook | The AI boom continues Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) Q4 net profit is expected to surge by 58%.

Chip manufacturing giant Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) will announce its fourth quarter earnings this Thursday. According to LSEG SmartEstimate's survey, analysts expect Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's Q4 net profit to reach 377.95 billion New Taiwan Dollars (equivalent to 11.41 billion US dollars), a 58% year-on-year increase. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR reported a 39% increase in fourth quarter revenue last week, reaching 868.5 billion New Taiwan Dollars (equivalent to 26.3 billion US dollars). Analysts had expected revenue to be 854.7 billion New Taiwan Dollars. The world's largest contract chipmaker has benefited from the artificial intelligence (AI) boom, with clients including Apple Inc. and NVIDIA Corporation. However, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR faces political uncertainty and resistance from US President Donald Trump's tariff policies. Arete Research co-founder and senior analyst Brett Simpson stated that AI clients will continue to drive Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's business growth by 2025. He added, "From the perspective of the US government, Arete is optimistic that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR can establish a good relationship with the new administration, particularly considering that its new wafer fab cluster in Arizona is currently the largest foreign direct investment project in the US." Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR is investing billions of dollars in overseas to build new factories, including spending $6.5 billion to build three factories in Arizona, USA. Edward Chen, director of the securities investment department at Fubon Financial Holdings, stated that the progress and yield (percentage of usable chips) of the Arizona wafer fab are crucial for the company. He added, "In addition, the impact of the upcoming Trump administration's tariff on demand remains to be seen." Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR will provide updates on its outlook for the current quarter and full year, including capital expenditure plans, during the earnings conference call. During the company's earnings conference call in October last year, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR stated that capital expenditure in 2025 could be higher than the previous year, but did not disclose specific numbers. The company forecasted that capital expenditure in 2024 will be slightly above $30 billion during the conference call. The AI boom has driven the stock price of this Asian company with the highest market value to rise, with Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's US stocks soaring by 93% last year.