Taiwan Semiconductor Manufacturing Company (TSMC) reached a record high of $345 per share on Thursday, following its announcement of Q4 results that revealed revenues of $33.71 billion, a 25% increase from the prior year. The results exceeded Wall Street’s expectations of $33.26 billion, with earnings per share (EPS) hitting $3.14—11% higher than anticipated and a 35% increase year-over-year.
TSMC projected Q1 revenues between $34.6 billion and $35.8 billion, significantly above analyst expectations of $33.27 billion. The company is also forecasting capital expenditures of $52-$56 billion, up over 27% from last year, spurred by robust demand for AI and high-performance computing chips.
CEO Che-Chia Wei noted the immense and growing demand for AI technologies, citing a return on invested capital (ROIC) of 27.6%, indicating strong shareholder value generation. TSMC’s strong financials contribute to a P/E ratio of 26X, placing it in line with industry benchmarks.
