Taiwan Semiconductor Manufacturing Co.’s quarterly sales topped estimates, reinforcing investor hopes that the torrid pace of AI hardware spending will extend into 2025.

The world’s largest contract chipmaker reported a 39 per cent rise in October-December revenue to US$26.3 billion.

TSMC’s market value nearly doubled last year, and it now trades in the US at a valuation close to US$1.1 trillion. However, some investors worry about when the AI boom would peter out. While TSMC’s revenue beat, it was just 1.6 percent higher than the average projection and fell short of the most bullish analyst expectations.

Stock up 105% in the past year: The monthly revenue report is a taster of things to come, with Q4 earnings due 16 January. The combination of the December revenue and latest guidance already shows investors the high demand for artificial intelligence chips and services may well continue into 2025.

Taiwan Semiconductor Manufacturing Co. posted December quarter revenue that topped analyst estimates as the company continues to get a boost from the AI boom. TSMC manufacturers semiconductors for some of the world's biggest companies from Apple to Nvidia.