TSMC's official Q1 2025 financial report

TSMC's Q4 Profit Soars 57%; Raises 2025 Capex Amid Strong AI Demand

Jan 16, 2025, 06:34 AM

Taiwan Semiconductor Manufacturing Company (TSMC) reported record profits in the fourth quarter of 2024, with net income rising 57% year-on-year to approximately $11.4 billion, or $2.24 per ADR unit. The company's revenue increased 38.8% year-on-year to around $26.9 billion, surpassing estimates. The strong performance was driven by robust demand for AI chips, with high-performance computing (HPC) accounting for 53% of revenue. TSMC projected optimistic guidance for the first quarter of 2025, forecasting revenue between $25 billion and $25.8 billion and gross margins between 57% and 59%. Operating margins are expected to be between 46.5% and 48.5%. The company announced higher capital expenditures for 2025, forecasting between $38 billion and $42 billion, up from $29.8 billion in 2024, indicating expectations of continued strong AI demand growing at a 40% compound annual growth rate. TSMC's major customers include Nvidia and Apple.