Chips that are powerful enough to run AI servers are in high demand, helping propel Taiwan Semiconductor Manufacturing’s stellar financial results. Shares of Taiwan Semiconductor Manufacturing Co. (TSMC) are up in premarket trading Thursday after the company announced its Q4 2024 earnings results.

TSMC, which makes chips for Nvidia, reported net income of $11.6 billion. Its CFO said this was supported by "strong demand" for its advanced chips.

If growth at a reasonable price is the goal, the world’s largest contract chip manufacturer fits the bill. Strong demand for artificial intelligence chips has delivered a stellar quarter for Taiwan Semiconductor Manufacturing Co.

TSMC's strong Q4 earnings, driven by AI demand and operational excellence, make it a high-quality investment. Click here to find out why I rate TSM stock a Buy.

U.S.-listed shares of Taiwan Semiconductor Manufacturing Co. rose in premarket trading Thursday after the world's largest contract chip manufacturer posted better-than-expected fourth-quarter profit and a bullish outlook for artificial intelligence demand.

The world’s largest contract chip maker reported another record quarter as it continued to ride the AI wave while navigating the U.S.-China chip rivalry.

Taiwan Semiconductor Manufacturing Co , the main global producer of advanced chips used in artificial intelligence applications, is expected to report a 58% leap in fourth-quarter profit on Thursday because of surging demand.

ASML has had an average P/E ratio of 43 for the last five years, so it is comparatively cheap at the moment. Conversely, TSMC has averaged a 24 earnings multiple over the same timeframe, signaling it could pull back if business conditions worsen.

Taiwan Semiconductor Manufacturing Co. projected quarterly sales and capital expenditure ahead of analysts’ estimates, fueling hopes that spending on AI hardware should remain resilient in 2025.Most Read from BloombergThese Homes Withstood the LA Fires.

Needham analyst Charles Shi has maintained their bullish stance on TSM stock, giving a Buy rating on January 8.Stay Ahead of the

The company revealed net income rose 57% for the final quarter of 2024, while revenue increased 37% to almost $27 billion.

NVIDIA's demand for advanced packaging from TSMC, but the tech it needs is changing: Jensen Huang says NVIDIA will transition to CoWoS-L packaging.