Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) posted fourth-quarter sales at the top end of its estimates, supported by demand for artificial intelligence (AI) applications.
The giant chipmaker, which supplies companies including Apple and Nvidia, reported sales of NT$625.53 billion (US$19.6 billion) for the quarter, up 14.4% from a year earlier.
That took full-year 2023 sales to NT$2.16 trillion, down 4.5% from 2022’s sales record of NT$2.26 trillion.
Analysts at Wedbush said the 4Q sales were 2% above their estimate of NT$614.7 billion and consensus at NT$615.6 billion.
“This result mirrors our prior commentary anticipating a strong CQ4 for the company tied to Apple seasonality, continued growth in demand for AI solutions, and better Chinese handset dynamics,” the analysts wrote in a client note.
Wedbush has an ‘Outperform’ rating and a target price of NT$700 for TSMC.
In Taiwan, its shares were down 0.3% at NT$584 on Wednesday. Its NYSE-listed shares were 0.1% higher at $102.02 in premarket trading.
The company is due to report full Q4 earnings on January 18.