The demand for AI chips continues to surge, and Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR(TSM.US) performance and prospects exceed expectations! Net profit in Q4 increased sharply by 57%.

Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) is expected to exceed analysts' expectations for first quarter sales and capital expenditure in 2025, sparking hopes that AI hardware spending will remain resilient in 2025. Meanwhile, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's net profit in the fourth quarter of 2024 increased significantly by 57%, exceeding market expectations and boosting investor confidence in the continuation of the AI hardware spending boom in 2025. The Q4 gross margin of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR reached 59%, surpassing the market expectation of 58.5% and the previous quarter's 57.8%. A close to 60% gross margin is very rare for a capital-intensive chip manufacturer. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR expects first quarter sales to be between $25 billion and $25.8 billion, surpassing the average analyst prediction of $24.4 billion. The company expects to invest between $38 billion and $42 billion this year in technology and capacity upgrades, exceeding analysts' expectations of $35.2 billion. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR management also expects a first quarter gross margin of 57% to 59%, exceeding the market estimate of 56.9%. The world's largest chip manufacturer reported a fourth-quarter net profit of NT$374.7 billion (approximately $11.6 billion), higher than the average profit expectation of NT$369.8 billion; earnings per share were $2.24, exceeding market expectations. The company also reported better-than-expected revenue last week, with revenue reaching $26.88 billion, a year-on-year increase of 37.0%. This strong performance continues a streak of consecutive beats over the years, with Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR exceeding profit expectations in all quarters except one since the summer of 2019. This momentum was initially driven by Apple Inc.'s iPhones and iPads, while the AI spending cycle propelled NVIDIA Corporation's valuation to over $3 trillion. As the main chip manufacturer for Apple Inc. and NVIDIA Corporation, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR attracts considerable attention to the outlook for the entire electronics industry. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR is one of the biggest beneficiaries of the global AI development competition. The company's stock price rose over 80% in 2024, marking the largest percentage increase since 1999. ChatGPT has stimulated the crazy construction of AI infrastructure in the last two years, but so far lacks a large-scale AI application that can generate profit, leading to concerns about a potential bubble. The company is also dealing with the uncertainty brought by the US-China tech conflict. The US announced new export control rules for AI chips earlier this month to restrict their export. Apple Inc. remains the largest customer of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, with sales of the iPhone expected to decline. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's revenue reaches new highs due to AI chip demand Morgan Stanley recently stated that it expects the company's sales growth rate to reach around 20% in 2025 (in USD). Bloomberg Industry Research analyst Charles Shum commented on the revenue prospects for 2025, stating, "Aside from sustained strong demand for AI chips, there is also support from new smart phone chips and AI PCs, potential more outsourcing orders from Intel Corporation, and the WiFi 7 chip." Analyst Steven Tseng stated that the Biden administration's restrictions on advanced chip production exempt countries with fewer than 300 billion transistors, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR may be able to retain more than half of its existing orders from China. This will enable Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR to maintain its sales of smartphone SoCs and mid-range computing chips in China. China's chip orders account for.12.6% of revenue for the months 1-9.Political tensions are driving the global expansion of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR. Investors will be watching closely to see how the expansion of their factories in Arizona and Japan progresses, as well as whether additional expansion plans will proceed smoothly or be delayed. According to sources, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR is planning to establish more factories in Europe, with a focus on the artificial intelligence chip market. Additionally, the company is also building a factory in Dresden, Germany.