TSMC Stock Jumps on Better-Than-Expected Q4 Profit, Bullish AI Outlook

Group 1 - TSMC's U.S.-listed shares rose 4% in premarket trading following a better-than-expected fourth-quarter profit and a positive outlook for AI demand [1] - The company reported a profit of NT$374.68 billion ($11.37 billion), marking a 57% year-over-year increase, with earnings per share at NT$14.45 ($0.44) [2] - TSMC's revenue for the fourth quarter was NT$868.46 billion, a 39% year-over-year increase, and projected 2024 revenue of NT$2.89 trillion, reflecting a 34% gain [3] Group 2 - TSMC's CFO indicated that the fourth-quarter performance was driven by strong demand for 3nm and 5nm technologies, with expectations of smartphone seasonality impacting Q1 2025, partially offset by AI-related growth [4] - The company projects Q1 2025 revenue between $25.0 billion and $25.8 billion, with gross profit margins between 57% and 59%, and operating profit margins between 46.5% and 48.5% [4] - TSMC anticipates a capital budget for 2025 to be between $38 billion and $42 billion [4]