16 January 2025
If you are covering TSMC’s latest financial results, please find below a comment from Ben Barringer, technology analyst at Quilter Cheviot:
"TSMC has delivered a solid set of results, meeting expectations on sales while exceeding guidance, reaffirming its position as one of Asia’s most valuable and globally significant companies. The company reported a 30% increase in revenue for 2024 and an impressive 34% growth forecast for Q1. These results were bolstered by strong contributions from AI-related revenues, which are increasingly becoming a key driver of growth.
"In 2023, AI accounted for just 5% of TSMC’s revenues, but this figure climbed sharply to 15% in 2024 and is projected to be 30% by the end of 2025. Furthermore, TSMC’s guidance suggests 40% growth in AI revenues over the medium term, pushing its long-term growth expectations from 15% to 20%. This acceleration highlights the company’s ability to capitalise on the AI revolution and its dominance in the semiconductor space.
"Another standout from the results was TSMC’s capital expenditure guidance, which came in between $38 billion and $42 billion—nicely above the anticipated $38billion. This represents a 5% outperformance against expectations and underlines the company’s commitment to maintaining its technological edge and capacity in a highly competitive industry.
"Overall, these results underscore TSMC’s status as a world-class business, outperforming competitors like Intel and Samsung in the semiconductor market. With its strong position in AI and robust financials, TSMC remains a compelling option for investors looking to gain exposure to the rapid growth of AI and the broader tech sector."
