TLDR
- Taiwan Semiconductor Manufacturing Co. (TSMC) reported record fourth-quarter revenue of $33.73 billion and earnings of $3.14 per share, beating Wall Street estimates.
- TSMC stock jumped over 6% to a record high following the earnings announcement, with other chip stocks like Nvidia, AMD, and ASML also climbing.
- The chipmaker reported 35% year-over-year profit growth and announced plans to increase capital spending in 2026.
- TSMC executives cited strong demand for AI chips and leading-edge process technologies as drivers of continued business growth.
- The VanEck Semiconductor ETF closed up 2% on Thursday, reflecting industrywide confidence in semiconductor demand.
Taiwan Semiconductor Manufacturing Co. reported fourth-quarter results on Thursday that exceeded analyst expectations. The world’s largest contract chipmaker posted revenue of 1.05 trillion New Taiwan dollars, equivalent to $33.73 billion. Earnings came in at $3.14 per American Depositary Receipt, both figures topping Wall Street estimates from Visible Alpha.
TSMC Q4ā25 Earnings Highlights:
ā Revenue beat ā $33.73B vs $33.3B est
ā Gross margin beat ā 62.3% vs 60.5% est
ā Operating margin beat ā 54.0% vs prior 49ā51% guide
ā Net profit beat ā $16.30B vs $15.2B estš TSMC $TSM smashed expectations across the board, signalingā¦ pic.twitter.com/6z22KlZkAo
— Trader Edge (@Pro_Trader_Edge) January 15, 2026
The strong results triggered a rally across semiconductor stocks. TSMC’s U.S.-listed shares surged over 6% to reach a record high in Thursday morning trading. The gains extended to other chip industry players throughout the day.
Nvidia closed up more than 2% on Thursday. AMD finished the day up almost 2%. Broadcom, which manufactures custom AI chips, rose about 1% by market close.
Dutch chip equipment maker ASML, a key supplier to TSMC, jumped 6% following the earnings report. Micron Technology gained about 1% while Lam Research climbed 4%. Applied Materials and Analog Devices also posted gains during Thursday’s session.
The VanEck Semiconductor ETF closed up 2% for the day. The fund counts Nvidia, TSMC, and Broadcom among its largest holdings.
TSMC reported a 35% increase in fourth-quarter profit compared to the same period last year. The company announced plans to boost capital spending in 2026. This decision signals management’s confidence in sustained demand for semiconductor manufacturing capacity.
Strong AI Chip Demand Drives Growth
TSMC CFO Wendell Huang stated the quarter’s performance reflected strong demand trends expected to continue through 2026. He said the company expects business to be supported by continued strong demand for leading-edge process technologies. CEO C.C. Wei commented on market conditions during the earnings call.
Wei said developments in the AI products market “continue to be very positive” for TSMC’s business. He pointed to increasing AI model adoption across consumer, enterprise, and sovereign AI segments. This trend is driving greater need for computation power, which supports demand for advanced silicon chips.
TSMC manufactures chips designed by major AI companies including Nvidia and Advanced Micro Devices. The company’s position as the dominant semiconductor manufacturer has driven revenue to consecutive record highs. Its results serve as an indicator of demand conditions in the AI hardware market.
Market Performance and Looking Ahead
TSMC shares have gained close to 65% over the past 12 months through Thursday’s trading. The company has emerged as one of the primary beneficiaries of the AI boom. Its manufacturing capabilities for cutting-edge chip designs have positioned it at the center of AI infrastructure buildout.
The earnings report arrived ahead of U.S. tech earnings season. Intel is scheduled to report results next week. Apple, Tesla, Meta, and Microsoft will announce their quarterly results the following week.
The semiconductor industry rally on Thursday demonstrated investor confidence in continued AI-related demand. TSMC’s increased capital spending plans for 2026 underscore expectations for sustained growth in chip manufacturing needs.
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