TSMC's Strong Performance and Increased Capex Signal Robust AI Demand

Key Intelligence

• ■Taiwan Semiconductor Manufacturing Co. (TSMC) reported stellar Q4 results, surpassing profit estimates and providing an impressive Q1 outlook.
• ■The company is experiencing unprecedented demand for AI chips, indicating it cannot produce them fast enough to meet current market needs.
• ■TSMC announced a significant increase in its capital expenditure plans, signaling strong confidence in the sustained growth and long-term AI boom.
• ■This upbeat outlook from the world's largest contract chipmaker has invigorated investor confidence, leading to rallies in US and emerging stock markets, and boosting valuations for key suppliers like ASML.