Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) saw its stock rise by 3.86% to close at $214.79 on January 16, 2025, following a robust fourth-quarter earnings report that exceeded market expectations. The company reported a 57% increase in net income to T$374.68 billion, driven by strong demand for AI and high-performance computing (HPC) chips. Revenue for the quarter surged 38.8% y/y to NT$868.46 billion, with advanced technologies like 3nm and 5nm processes accounting for 74% of total wafer revenue. TSMC's announcement of a significant capital expenditure plan for 2025, ranging from $38 billion to $42 billion, further fueled investor optimism, as it underscores the company's confidence in sustained demand for its cutting-edge technologies.
The stock opened at $218.89 and reached an intraday high of $221.95 before settling lower, with trading volume soaring to 35,818,161 shares, more than double the average. The market's positive reaction was also bolstered by TSMC's strategic expansion in the U.S., including the production of advanced four-nanometer chips in Arizona, which aligns with the company's efforts to mitigate geopolitical risks and capitalize on the AI boom. Despite potential challenges from U.S. export restrictions to China, TSMC's strong financial performance and strategic investments have reinforced its position as a leader in the semiconductor industry.