Key Stats for TSMC Stock
- Price Change for TSMC stock: -1.24%
- $TSMC Share Price as of Jan. 14: $327
- 52-Week High: $336
- $TSMC Share Price Target: $366
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What Happened?
Taiwan Semiconductor Manufacturing Company (TSM) crushed expectations on Thursday, reporting a 35% jump in fourth-quarter profit that hit a fresh record. The chipmaking giant posted net income of NT$505.74 billion, easily beating analyst estimates of NT$478.37 billion.
Revenue also impressed, coming in at NT$1.046 trillion ($33.73 billion) versus expectations of NT$1.034 trillion. This marks the eighth straight quarter of year-over-year profit growth for the world’s largest contract chipmaker.
TSM stock is riding high on relentless demand for AI chips. The company manufactures advanced processors for tech heavyweights like Nvidia and AMD, positioning it at the center of the artificial intelligence revolution.
TSMC’s high-performance computing division, which handles AI and 5G applications, drove most of the sales during the quarter.
The company’s most advanced chips are doing the heavy lifting. Chips measuring 7-nanometer or smaller accounted for 77% of total wafer revenue in the fourth quarter.
For the full year 2025, these cutting-edge chips made up 74% of revenue, up from 69% in 2024. Smaller nanometer sizes mean more compact transistors, which deliver faster processing and better energy efficiency.
Looking ahead, TSMC guided first-quarter 2026 revenue between $34.6 billion and $35.8 billion, with gross margins expected to land between 63% and 65%.
It also announced a hefty capital budget of $52 billion to $56 billion for 2026, signaling confidence in continued demand.
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What the Market Is Telling Us About TSMC Stock
TSM stock is getting a boost because investors see the AI boom as far from finished. Counterpoint Research senior analyst Jake Lai expects 2026 to be another “breakout year” for AI server demand.
He pointed to TSMC’s ongoing expansion of 2-nanometer capacity and advanced packaging as key drivers that should keep performance strong throughout the year.
The market clearly believes TSMC is in the right place at the right time. With AI applications expanding across industries and major tech companies racing to secure chip supply, TSMC’s position as the leading manufacturer of advanced semiconductors gives it significant pricing power and visibility into revenue.
Lai noted that chip demand tied to consumer electronics like smartphones and PCs could face headwinds from the ongoing memory shortage and rising prices. This could create some volatility for TSM stock if consumer device sales soften.
Still, the broader AI trend appears strong enough to offset potential weakness in consumer electronics.
TSMC’s massive capital spending plans and continued investment in next-generation technology suggest management sees years of robust demand ahead.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
