According to Q4 earnings report, Net sales at Taiwan Semiconductor Manufacturing Company (TSM, Technology) jumped 33.9% from the past year, well ahead of the analyst's forecast, as demand surged for AI technology. The company, which dominates the global chip market, made NT$2.9 trillion ($87.8 billion) in revenues that were higher, nearly doubling an October forecast for a 30 percent increase. Even with this strong performance, the booming AI infrastructure investment has been a strong showing by the names of Microsoft (MSFT, Financial) and Amazon (AMZN, Financial).
It is crucial that TSMC serves as the leader in charge of the AI revolution. The company makes some of the world's most advanced microchips, which power products from Silicon Valley giants like Apple's (AAPL, Financial) iPhones to Nvidia's (NVDA, Financial) AI hardware. Behind that extreme TSMC stock rise: The company's stock has doubled since late 2022, spurred by the rise of generative AI, including OpenAI's ChatGPT.
But the company is rife with risk. Taiwan's supply chain is threatened by geopolitical tensions between the U.S. and China and by its precarious position. That's black forcing governments to push TSMC to spread its manufacturing base. The company has responded with plans for new factories in the U.S. and Japan to mitigate dependence on Taiwan's domestic production.
TSMC is well positioned to do what no one has or will be able to do in the future: lead the world in technological leadership and provide strategic expansion, then grow globally while managing the complexities of the geopolitical world.
