expectations soar for tsmc's upcoming earnings call
Hsinchu, Monday, 6 January 2025.
TSMC is set to unveil its latest earnings, stirring excitement among investors. Analysts predict robust growth despite typical seasonal slowdowns. The company’s advanced 3/5nm production capabilities are driving optimism, as they are expected to enhance performance significantly. This momentum could see TSMC’s revenue surpass the $100 billion mark for the first time, setting a new benchmark. The anticipation of strong results is also buoyed by TSMC’s strategic expansion in advanced chip production and new overseas facilities. These factors collectively suggest a potential positive impact on TSMC’s stock performance, making the upcoming earnings call a focal point for stakeholders.
Record-breaking revenue projections
Financial analysts anticipate TSMC’s 2025 revenue to reach $107.1 billion [1], marking the first time the company would cross the $100 billion threshold. This projection is supported by the company’s strong performance in advanced manufacturing nodes, with 3nm and 5nm production lines operating at full capacity [1]. The semiconductor giant’s Q4 2024 revenue is expected to land between $26.1 billion and $26.9 billion [1], setting a solid foundation for 2025’s growth trajectory.
AI-driven demand fuels growth
TSMC’s dominant position in AI chip manufacturing is strengthening its market outlook. The company has secured significant commitments from major AI players, with Nvidia alone claiming 60% of TSMC’s advanced Chip on Wafer on Substrate (CoWoS) packaging capacity for 2025 [3]. The company’s earnings are projected to grow by 27.34% in the coming year [2], with quarterly earnings per share expected to steadily increase from $1.82 in Q1 to $2.55 in Q4 2025 [2].
Global expansion enhances outlook
TSMC’s strategic global expansion is poised to boost its 2025 performance. The company’s new facilities in Arizona, United States, and Kumamoto, Japan, will begin contributing to operations [1]. This geographical diversification addresses customers’ needs for supply chain resilience while opening new revenue streams. Bank of America has expressed confidence in TSMC’s trajectory, citing strong AI demand and improvements in N3/N2 technology [4].