TSMC Projects 30% Revenue Growth in 2026 Driven by AI Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Significant Revenue Growth: TSMC reported a 20.5% year-over-year revenue increase and a 35% jump in net income for Q4 2025, indicating strong market demand and enhanced profitability, with a projected revenue growth of nearly 30% in 2026.
- Strong AI Accelerator Demand: TSMC expects AI accelerator revenue to grow by at least 50% annually through 2029, highlighting the sustained demand from the AI sector that will drive long-term growth in the semiconductor market and strengthen the company's market position.
- Increased Capital Expenditure: TSMC plans to raise its capital expenditures to between $52 billion and $56 billion in 2026, a significant increase from $40 billion in 2025, reflecting the company's confidence in future AI demand and commitment to expanding production capacity.
- Production Capacity Expansion: TSMC is accelerating the start of production at its second fab in Arizona, now expected to begin high-volume manufacturing in the second half of 2027, to meet the growing market demand, while also acquiring additional land to support future expansion.
Analyst Views on TSM
Wall Street analysts forecast TSM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSM is 348.25 USD with a low forecast of 290.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 341.640
Low
290.00
Averages
348.25
High
400.00
Current: 341.640
Low
290.00
Averages
348.25
High
400.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based integrated circuit foundry service provider. The Company is primarily engaged in integrated circuit manufacturing services. It offers advanced process technologies, specialised process solutions, advanced photomask and silicon stacking, and packaging-related technologies, while supporting a comprehensive design ecosystem. The Company's products serve diverse electronic sectors including artificial intelligence, high-performance computing, wired and wireless communications, automotive and industrial equipment, personal computing, information applications, consumer electronics, smart internet of things, and wearable devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
