Taiwan Semiconductor Manufacturing Company (TSM, Financial) continues its impressive financial trajectory, reporting a 29.2% year-over-year revenue surge in October 2024, reaching NT$314.24 billion. For the first ten months of the year, revenue skyrocketed by 31.5% to NT$2,340.09 billion, reflecting the company's robust market performance. AI-related revenue, projected to triple in 2024, is set to comprise a mid-teens percentage of total sales next year. With these numbers, Taiwan Semiconductor reinforces its position as a growth powerhouse in the semiconductor sector, while maintaining a forward price-to-earnings ratio of 21.8 for 2025, making it an attractive pick for long-term investors.
Beyond financials, Taiwan Semiconductor's strategic decisions are making waves in the global tech ecosystem. The company announced it will halt the production of advanced AI chips (7-nanometer nodes or smaller) for Chinese firms, such as Alibaba and Baidu, starting Monday. This move aligns with anticipated US export controls. While these geopolitical tensions introduce risks, The company has reassured stakeholders that this decision's revenue impact will be minimal. Furthermore, its proactive stance underscores its commitment to compliance with US regulations and its role as a “law-abiding” industry leader.
With its unparalleled expertise in manufacturing GPUs, AI accelerators, and CPUs, Taiwan Semiconductor is the linchpin in the AI revolution. CEO C.C. Wei highlighted that nearly every AI innovator collaborates with the company, emphasizing the company's indispensable role regardless of market winners. As geopolitical dynamics reshape the industry, its financial momentum and strategic foresight position it as a resilient leader and a top-tier investment in the semiconductor space. Investors betting on AI growth and tech innovation can count on Taiwan Semiconductor to deliver value amid shifting global dynamics.
