TSM Stock Rises After-Market On Profit Beat, Positive Outlook: Retail Sentiment Surges To Year-High

U.S.-listed shares of Taiwan Semiconductors Manufacturing (TSM) climbed more than 1% in after-market trade on Wednesday, after the chip maker reported profit that beat expectations and issued a robust outlook for 2025.

Earnings per share were $2.24 for the quarter, largely in line with Wall Street’s estimate of $2.20 per share.

TSMC reported earnings per share (EPS) of $2.24 for the fourth quarter, slightly ahead of Wall Street’s estimate of $2.20. 

Net income for the period came in at $11.38 billion, surpassing the $11.29 billion forecast and representing a 57% year-over-year increase, according to Koyfin.

The company also provided a strong revenue forecast for the first quarter of 2025, expecting sales between $25 billion and $25.8 billion, ahead of market expectations of $24.7 billion. 

Additionally, TSMC projects a gross margin of 57% to 59%, exceeding the consensus estimate of 56.8%.

The company already announced its revenue numbers last week. 

Its December quarter revenue came in at $26.36 billion, growing by 38.8% year-on-year, ahead of analyst estimates of $26.26 billion, according to Stocktwits data.

For the full year, TSMC reported revenue of $87.8 billion, growing by 33.9% over 2023 – surpassing its official target of a 30% annual increase. 

“Our business in the fourth quarter was supported by strong demand for our industry-leading 3nm and 5nm technologies,” said Wendell Huang, Senior VP and Chief Financial Officer of TSMC. 

The advanced 3nm and 5nm chips accounted for 60% of total wafer revenue, while 7nm chips contributed 14%.

Taiwan Semiconductors Manufacturing ADR Sentiment and Message Volume on Jan.16 as of 2:16 a.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment surged to ‘extremely bullish’ (93/100) from ‘bullish’ a day ago, marking a year-high. Message volumes also spiked to ‘extremely high’ from ‘high’ levels during the same period.

Users on the platform speculated that TSMC’s positive earnings report could spark a broader rally in semiconductor stocks. 

Some noted that the results were especially promising for Advanced Micro Devices (AMD), one of TSMC’s largest customers. 

At the time of writing, AMD’s stock had edged up 0.3%.

Others anticipate that TSMC’s stock will open higher on Thursday, regardless of whether they have a wider market impact. 

TSMC’s stock has gained over 100% in the past year and is up 2.5% year-to-date. 

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