TSMC Reported Strong Growth in Q4

TSMC booked robust revenue growth in the fourth quarter of 2024. Sales in December jumped 57.8%.

The contract chipmaker benefitted from demand for chips to power AI workloads, reporting Q4 revenue rose 38.6% to TWD869.5 billion ($26.3 billion). Net profit in 4Q24 rose 57% to TWD374.7 billion, as sales for the full year grew 33.9% to TWD2.9 trillion. 

On an earnings call, the company predicted 1Q25 revenue to increase between 32.5% and 36.7% to $25 billion to $25.8 billion, with its gross margin expected to remain at 57% to 59%. It issued a full-year capex guidance ranging from $38 billion to $42 billion, up from $29.8 billion in 2024, which was flat.

High-performance computing sales grew 19% to account for 53% of total revenue, up from 43% in the same period in 2023. Smartphone revenue grew 17%, accounting for 35% of the total compared with 43%. Its 3nm process technology accounted for 26% of total wafer revenue, compared with 15% in 4Q23, while 5nm chips represented 34%, down from 35%.