On Thursday, January 18th, Taiwan Semiconductor announced its Q4 earnings. The financial report showed a net profit of TWD 238.7 billion for the last quarter, a YoY decrease of 19%, but a QoQ increase of 13%, surpassing market expectations of TWD 224.13 billion.
As of the time of writing, Taiwan Semiconductor's stock in the US after-hours trading surged nearly 6%.
During the earnings conference, Taiwan Semiconductor stated:
<ul>
<li>The demand for 3nm technology from customers is expected to remain strong for several years.</li>
<li>The development of N2 (2nm process technology) is progressing smoothly, with plans to begin mass production in 2025.</li>
<li>The company's sales compound annual growth rate (CAGR) is projected to be between 15% and 20% in the coming years, with a revenue growth rate in 2024 falling within the low to mid-range of 20% in USD terms.</li>
<li>Taiwan Semiconductor expects its sales for the first quarter of this year to be between USD 18 billion and USD 18.8 billion.</li>
<li>The Arizona factory is expected to achieve mass production in the first half of 2025.</li>
<li>Construction of a wafer fab in Germany is expected to begin in the fourth quarter of this year.</li>
</ul>
Prior to this, Taiwan Semiconductor received positive outlook from analysts, with 35 buy ratings, 2 hold ratings, and no sell ratings for the stock.
Amir Anvarzadeh, a strategist at Asymmetric Advisors, stated that due to its undisputed dominance in the production of AI chips, Taiwan Semiconductor may eventually explode. With the company's current low valuation, prospects of better-than-expected sales, and potential price increases, the stock price of Taiwan Semiconductor may continue to rise.

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In the last quarter, we achieved a net profit of TWD 238.7 billion, a YoY decrease of 19%, but a MoM growth of 13%, exceeding the expected TWD 224.1 billion.

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Taiwan Semiconductor's Q4 performance exceeded expectations, with a 6% surge in after-hours trading at one point.