TSMC, $2.4 trillion chipmaker behind AI, reports $143 billion revenue

TSMC sits at the center of the AI supply chain not because it designs chips, but because it is the only company that can manufacture them at scale for Nvidia, Apple, Intel and the hyperscalers. That position has translated into financials unusual for a manufacturer: $143 billion in trailing revenue, up 34% year-over-year last quarter, and a 60% operating margin, which the article notes is higher than almost every software company in the world.

The company is also working to diversify its manufacturing away from Taiwan, with a plan to invest $265 billion in U.S. factories alone, much of which is already complete. Even so, some investors remain concerned about China's rhetoric regarding the island.

With a trailing price-to-earnings ratio of 33, TSMC stock does not look overly expensive relative to its growth, but the bullish case hinges on whether AI training and usage spending continues. If revenue rises to $200 billion at a 60% margin, earnings would be $120 billion; if it falls to $125 billion with 45% margins, earnings would drop to $56 billion. The outcome for TSMC shareholders, and for the AI infrastructure trade more broadly, is likely to track that spending.