Taiwan Semiconductor Manufacturing Company (TSMC) recently reported quarterly sales that exceeded market expectations, further boosting investors' confidence that spending on artificial intelligence hardware will continue to grow through 2025.
According to the latest data, TSMC's revenue reached NT$868.5 billion (approximately US$26.3 billion) during the period from October to December last year, marking a 39% increase compared to the same period the previous year. This performance far surpassed market analysts' average expectation of NT$854.7 billion.
As the world's largest chip manufacturer, TSMC is at the forefront of global competition in artificial intelligence development. Its major clients include tech giants like Nvidia and Apple. Due to the rapid advancement of AI, many large companies, including Google's parent company Alphabet and Microsoft, are actively expanding and upgrading their data centers to drive AI development. Recently, AI server manufacturer Foxconn also reported better-than-expected sales performance, while Microsoft announced it would invest US$80 billion in data center construction this fiscal year.
Since OpenAI launched ChatGPT at the end of 2022, TSMC's stock price has doubled, and its market value once surpassed US$1 trillion. However, there are also cautious voices in the market, pointing out potential issues such as overbuilding, development bottlenecks like power shortages, and the lack of a "killer" AI application that can fully utilize these server capacities.
In the upcoming full financial report, TSMC will face challenges not only in the AI sector. Its future development is also subject to uncertainties in the technology market and geopolitical landscape. According to Bloomberg Intelligence's analysis, the company's gross margin is expected to reach its highest point in two years at 58% or higher.
In the upcoming earnings conference call, four areas deserve attention: first, the construction and revenue prospects of CoWoS advanced packaging capabilities, which will provide important insights into AI chip demand over the next 12 to 18 months; second, the progress of the factory in Arizona, USA, which is crucial for meeting the onshore manufacturing needs of companies like Apple and Nvidia; third, potential gross margin pressure due to weakened demand for 7nm, 16nm, and larger mature nodes; finally, the capital expenditure plans for 2025, which will demonstrate TSMC's market confidence in its next-generation N2 node.
Key Points:
🌟 TSMC's quarterly sales reached NT$868.5 billion, exceeding market expectations by 39%.
💻 Global AI hardware spending is expected to continue growing in 2025, with large companies increasing investments in data centers.
📉 The market should pay attention to TSMC's future uncertainties in the technology market and geopolitical landscape.
