TSMC Reports 35% Q4 Profit Surge, Boosting AI Sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: CNBC
- Strong Earnings: TSMC's fourth-quarter profit surged 35% year-over-year, exceeding Wall Street estimates and setting a new record, showcasing robust sales performance in high-performance computing and AI, thereby reinforcing its leadership in the global semiconductor market.
- Increased CapEx Outlook: The company anticipates capital expenditures to reach between $52 billion and $56 billion in 2026, significantly up from $40.9 billion in 2025, reflecting sustained strong expectations for AI demand that could drive future revenue growth.
- Positive Market Reaction: TSMC's impressive results led to a more than 5% increase in its stock price on Thursday, bringing its year-to-date gain to approximately 13%, while also boosting shares of other chip stocks like Nvidia and Broadcom, indicating optimistic sentiment towards AI-related equities.
- Analyst Ratings Upgraded: Several Wall Street analysts reiterated their bullish ratings on TSMC and raised outlooks for other AI-related companies, signaling growing confidence in the semiconductor sector, with expectations of continued benefits from AI infrastructure development in the coming years.
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: 327.110
Low
290.00
Averages
348.25
High
400.00
Current: 327.110
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.
