Taiwan Semiconductor Manufacturing reports a 57% jump in profit on strong demand for hardware to power AI systems.

The company revealed net income rose 57% for the final quarter of 2024, while revenue increased 37% to almost $27 billion.

Speaking on the sidelines of an event hosted by chip supplier Siliconware Precision Industries in Taichung, Taiwan, Huang explained the transition in Nvidia's chip packaging requirements.

Semiconductor stocks are getting hit with a wave of bearish pressures following news that the U.S. will take new steps to limit the export of advanced chips used for AI.

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and US-based artificial intelligence (AI) chip designer Nvidia Corp have partnered with each other on silicon photonics development, Nvidia founder and CEO Jensen Huang (黃仁勳) said.

Investors were not impressed by Nvidia's quarterly performance and outlook even though it handily beat Wall Street's expectations thanks to the booming demand for its artificial intelligence (AI) chips.

Nvidia's demand for advanced packaging from TSMC remains strong though the kind of technology it needs is changing, the U.S. AI chip giant's CEO Jensen Huang said on Thursday, after he was asked whether the company was cutting orders.

Meanwhile, a slew of other tech executives including Elon Musk, Jeff Bezos and Mark Zuckerberg are reportedly set to attend the events on Monday.

TSMC, which makes chips for Nvidia, reported net income of $11.6 billion. Its CFO said this was supported by "strong demand" for its advanced chips.

Nvidia's chief executive Jensen Huang said on Friday he will not be attending U.S. President-elect Donald Trump's inauguration, but will instead be "on the road" celebrating the Lunar New Year with employees and their families.

TSMC's Arizona Fab 21 began 4nm chip mass production in Q4 2024. Costs are higher than in Taiwan; 2nm production starts in 2025, with 3nm expansion ongoing.

Taiwan Semiconductor Manufacturing has outperformed 2024 expectations by wide margins. Check out 3 reasons to buy TSM stock.