The world’s largest contract chipmaker reported a 39 per cent rise in October-December revenue to US$26.3 billion.

TSMC is making headlines again with its AI exploits. The world’s largest chipmaker raked in 868.5 billion New Taiwan dollars ($26.3 billion) in revenue for

Taiwan Semiconductor Manufacturing Co.’s quarterly sales topped estimates, reinforcing investor hopes that the torrid pace of AI hardware spending will extend into 2025.

TSMC’s market value nearly doubled last year, and it now trades in the US at a valuation close to US$1.1 trillion. However, some investors worry about when the AI boom would peter out. While TSMC’s revenue beat, it was just 1.6 percent higher than the average projection and fell short of the most bullish analyst expectations.

Taiwan Semiconductor Manufacturing Co. posted fourth-quarter revenue that beat Wall Street estimates as the company keeps gaining from the artificial intelligence (AI) boom.

Boldly going Nvidia and TSMC have developed a silicon photonics-based chip prototype, according to a recent report from the Taiwanese press. Silicon photonics merges photonic circuits with traditional electronic circuits to surpass physical limitations in semiconductor fabrication.

South Korean outlets report that NVIDIA and Qualcomm are considering switching to Samsung Foundry for 2nm chip production, as TSMC prices are too high.

TSMC, the world's largest contract chipmaker, on Friday reported fourth-quarter revenue of T$868.42 billion ($26.36 billion), according to Reuters calculations, easily beating a market forecast, as the company reaps the benefit from artificial intelligence demand.

The strong AI momentum has more than doubled TSMC's sales since 2020, solidifying its position as a critical supplier in the semiconductor ecosystem. TSMC's stock has mirrored its operational success, soaring 81% over the past year and far outpacing the broader market's 28.5% gain.

The strong showing from TSMC bolsters expectations that big tech companies from Alphabet to Microsoft will continue to build and upgrade data centres at a rapid clip to propel AI development.

TSMC is entering an unprecedented growth phase, driven by accelerating AI infrastructure demand. Check out why I reiterate a strong buy rating on TSM stock.