TSMC Reports 35% Q4 Profit Surge, Sets New Record
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6h ago
0mins
Source: CNBC
- Performance Exceeds Expectations: TSMC's Q4 net income reached NT$505.74 billion, surpassing the expected NT$478.37 billion, indicating robust growth driven by strong demand for AI chips.
- Record Revenue: The company's Q4 revenue hit NT$1.046 trillion (approximately $33.73 billion), a 20.5% year-over-year increase that exceeded the market expectation of NT$1.034 trillion, reflecting sustained demand for advanced chips.
- Significant Technological Edge: In the October-December period, advanced chips measuring 7 nanometers or smaller accounted for 77% of total wafer revenue, underscoring TSMC's market leadership in high-performance computing and AI applications.
- Optimistic Future Outlook: Analysts predict that with TSMC's ongoing 2nm capacity expansion and new product launches, 2026 will be another breakout year for AI server demand, although chip demand in consumer electronics may be impacted by memory shortages.
Analyst Views on TSM
Wall Street analysts forecast TSM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSM is 348.25 USD with a low forecast of 290.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 331.210
Low
290.00
Averages
348.25
High
400.00
Current: 331.210
Low
290.00
Averages
348.25
High
400.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based integrated circuit foundry service provider. The Company is primarily engaged in integrated circuit manufacturing services. It offers advanced process technologies, specialised process solutions, advanced photomask and silicon stacking, and packaging-related technologies, while supporting a comprehensive design ecosystem. The Company's products serve diverse electronic sectors including artificial intelligence, high-performance computing, wired and wireless communications, automotive and industrial equipment, personal computing, information applications, consumer electronics, smart internet of things, and wearable devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
