AI demand remains strong! TSMC's Q4 net profit increased by 57% year-on-year
However, TSMC's stock price surged and then fell back, rising nearly 3% at one point to close to 0%. A conference call is about to be held
In the fourth quarter, TSMC's net profit was NT$374.7 billion, exceeding the estimate of NT$369.84 billion, a year-on-year increase of 57%. The gross margin for the fourth quarter was 59%, compared to the estimated 58.5%.
The conference call will be held at 14:00: Click here
Key focus areas include: how the expansion of CoWoS advanced packaging capacity will affect future AI chip demand; whether the capacity increase at the Arizona wafer fab in the U.S. can meet the needs of companies like Apple and NVIDIA; whether the weakening demand for mature nodes will put pressure on profits; and whether the capital expenditure plan for 2025 reflects TSMC's confidence in the N2 node.
However, TSMC's stock price rose and then fell back, from nearly a 3% increase to close to 0%:
Below is the full press release from TSMC:
Taiwan Semiconductor Manufacturing Company today (16th) announced its financial report for the fourth quarter of 2024, with consolidated revenue of approximately NT$868.46 billion, net profit after tax of approximately NT$374.68 billion, and earnings per share of NT$14.45 (equivalent to US$2.24 per American Depositary Receipt).
Compared to the same period last year, revenue for the fourth quarter of 2024 increased by 38.8%, and both net profit after tax and earnings per share increased by 57.0%. Compared to the previous quarter, revenue for the fourth quarter of 2024 increased by 14.3%, and net profit after tax increased by 15.2%. All financial figures are based on consolidated financial statements and prepared in accordance with the International Financial Reporting Standards recognized by the Financial Supervisory Commission (TIFRS).
In U.S. dollar terms, revenue for the fourth quarter of 2024 was US$26.88 billion, an increase of 37.0% compared to the same period last year, and an increase of 14.4% compared to the previous quarter.
The gross margin for the fourth quarter of 2024 was 59.0%, operating profit margin was 49.0%, and net profit margin after tax was 43.1%.
Shipments of 3nm process accounted for 26% of TSMC's wafer sales revenue in the fourth quarter of 2024, while shipments of 5nm process accounted for 34% of the total wafer sales revenue for the quarter; shipments of 7nm process accounted for 14% of the total wafer sales revenue for the quarter. Overall, revenue from advanced processes (including 7nm and more advanced processes) reached 74% of the total wafer sales revenue for the quarter.
