TAIPEI: TSMC, the world’s largest contract chipmaker, reported on Friday fourth-quarter revenue that easily beat market forecasts and hit its own expectations as it reaped the benefit of artificial intelligence demand.

Taiwan Semiconductor Manufacturing Co, whose customers include Apple, and Nvidia, has been at the forefront of the march towards AI that has helped it weather the tapering off of pandemic-led demand of chips used in consumer electronics like tablets.

Revenue in the October-December period of 2024 came in at T$868.42 billion ($26.36 billion), according to Reuters calculations, compared with an LSEG Smart Estimate of T$853.57 billion ($25.90 billion) drawn from 23 analysts.

That represents growth of 34.4% year-on-year, and compares with revenue of $19.62 billion in the year-ago period.

It is not a direct comparison as TSMC provides monthly revenue data only in Taiwan dollars, but gives quarterly revenue figures and its outlook on its quarterly earnings calls both in U.S. dollars.

On its most recent earnings call in October, TSMC forecast fourth-quarter revenue in a range of between $26.1 billion to $26.9 billion.

For December alone, TSMC reported revenue jumped 57.8% year-on-year to T$278.16 billion.

The company did not provide details in its brief revenue statement.

Other Taiwan companies have also reported strong fourth-quarter revenue due to the AI boom.

On Sunday, Foxconn, the world’s largest contract electronics maker and which makes AI servers for Nvidia, beat expectations to post its highest-ever revenue for the final three months of 2024.

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TSMC will report full fourth-quarter earnings on Jan. 16, when it will update its outlook for the current quarter and full year.

The company’s Taipei listed stock leapt 81% last year, compared with a 28.5% gain for the broader market.

It closed flat on Friday ahead of the release of the revenue numbers.

The benchmark index ended down 0.3%.