TSMC forecasts Q1 revenue of 2525.8 billion
Fourthquarter profit climbs 57 to a record high
Stock price has leapt on chip demand for AI applications
Incoming Trump administration an uncertainty for TSMC

TAIPEI, Jan 16 Reuters Taiwan Semiconductor Manufacturing Co logged record quarterly profit on Thursday and said it expects hefty firstquarter revenue growth as demand surges for chips used in artificial intelligence processing.

The world39;s largest contract chipmaker, whose customers include Apple and Nvidia, posted a 57 jump in net income to T374.68 billion 11.4 billion for the quarter ended Dec. 31, a record high for any quarter and in line with estimates. Revenue for the quarter climbed 39 from the same period a year earlier.

It expects similar revenue growth in the current quarter of 37.

TSMC also said it expects its capital spending for this year to be between 38 billion and 42 billion, an increase of as much as 41, maintaining its bullish outlook for AI demand.

The Taiwanese company, however, faces headwinds from U.S. government technology restrictions on China and uncertainty about Presidentelect Donald Trump39;s incoming administration, which has threatened broad import tariffs.

The U.S. government said on Monday it would further restrict AI chip and technology exports, adding to potential issues TSMC could face, though Taiwan and other close U.S. allies will be allowed unlimited access to U.S. AI technology.

TSMC is spending billions of dollars on new…