TSMC fourth-quarter profit beats estimates, soaring 35%, as AI chip demand stays strong

Taiwan Semiconductor Manufacturing Company connected Thursday reported a 35% summation successful fourth-quarter profit, beating estimates and hitting a caller grounds arsenic request for artificial quality chips remained strong.

Here are the company's results versus LSEG SmartEstimates, which are weighted toward forecasts from analysts who are much consistently accurate:

• Revenue: 1.046 trillion caller Taiwan dollars ($33.73 billion), vs. NT$1.034 trillion expected
• Net income: NT$505.74 billion, vs. NT$478.37 billion expected

The world's largest declaration chipmaker has present posted year-over-year nett maturation for 8 consecutive quarters.

Meanwhile, TSMC's gross successful the December 4th roseate by 20.5% from a twelvemonth agone to surpass NT$1 trillion, besides beating forecasts.

TSMC, Asia's largest exertion institution by marketplace capitalization, has benefited greatly from the proliferation of artificial intelligence, producing precocious AI processors for clients specified arsenic Nvidia and AMD. 

The company's high-performance computing division, which includes artificial quality and 5G applications, made up the bulk of income successful the October-December quarter.

TSMC said precocious chips measuring 7-nanometer oregon smaller made up 77% of full wafer gross during the quarter. 

In semiconductor technology, smaller nanometer sizes bespeak much compact transistor designs, allowing faster processing speeds and greater vigor efficiency.

"The request for AI remains precise strong, driving wide spot request crossed the full server industry," Counterpoint Research elder expert Jake Lai told CNBC, predicting that 2026 volition beryllium different "breakout year" for AI server demand. 

"With TSMC's ongoing 2nm capableness enlargement and caller accumulation contributing to revenue, on with continuous enlargement of precocious packaging... TSMC is expected to support beardown show successful 2026," Lai said. 

However, helium added that spot request tied to user electronics specified arsenic smartphones and PCs could beryllium affected by the ongoing representation shortage and terms hikes.