06:33 AM EST, 01/16/2025 (MT Newswires) -- Taiwan Semiconductor Manufacturing's ( TSM ) US-listed shares rose after the chipmaker recorded sharp gains in its fourth-quarter results and issued an upbeat revenue outlook Thursday for the ongoing period.

The company reported revenue of 868.46 billion New Taiwan dollars ($26.4 billion) for the December quarter, up from NT$625.53 billion a year earlier. The consensus on FactSet was for revenue of NT$867.81 billion. TSMC's New York stock exchange-listed stock increased 3.8% in premarket activity.

"Our business in the fourth quarter was supported by strong demand for our industry-leading (3 nanometer and 5 nanometer) technologies," Chief Financial Officer Wendell Huang said in a statement.

By platform, high-performance computing made up 53% of the fourth-quarter topline and increased 19% from the previous three-month period, according to an earnings presentation. Smartphones contributed 35%, rising 17% on a sequential basis, while automotive and internet of things made up 4% and 5% of the total revenue, respectively.

Earnings of the firm, which supplies chips to major corporations such as Apple (AAPL) and Nvidia (NVDA), came in at NT$72.25 per American depositary receipt unit versus NT$46.03 in the prior-year quarter. Four analysts polled by FactSet expected GAAP EPS of NT$72.54. Gross margin improved 6 percentage points to 59% on a yearly basis.

"Moving into first quarter 2025, we expect our business to be impacted by smartphone seasonality, partially offset by continued growth in (artificial intelligence)-related demand," Huang said.

The company anticipates revenue to be in a range of $25 billion to $25.8 billion for the current quarter, representing a roughly 35% annual increase at the midpoint, Huang said during an earnings call, according to a Capital IQ transcript. The Street is looking for $24.92 billion.

Gross profit margin is pegged at 57% to 59% for the first quarter. The chipmaker also plans to spend between $38 billion and $42 billion in 2025. "About 70% of the capital budget will be allocated for advanced process technologies," Huang said on the call.

TSMC projects its full-year revenue to rise close to the mid-20% range in US dollar terms, Chief Executive C. C. Wei told analysts, while the market estimates $112.45 billion. "Even after more than tripling in 2024, we forecast our revenue from AI accelerator to double in 2025 as the strong surge in AI-related demand continues," according to Wei.