TSMC Reports 35% YoY Net Income Growth in Q4, Forecasts Nearly 30% Revenue Growth in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Strong Performance: TSMC's Q4 net income surged 35% year-over-year to NT$505.74 billion, exceeding analyst expectations, indicating robust market demand and enhanced competitive positioning.
- Optimistic Revenue Outlook: The company forecasts nearly 30% revenue growth in 2026, primarily driven by demand for AI accelerators, reflecting confidence in future market dynamics and successful strategic positioning.
- Increased Capital Expenditure: TSMC plans to raise its capital budget to between $52 billion and $56 billion in 2026, with approximately 70% to 80% allocated to advanced process technologies, demonstrating a commitment to ongoing technological innovation.
- Capacity Expansion Plans: TSMC is accelerating expansion in Taiwan and Arizona, applying for permits to build a fourth factory and the first advanced packaging plant to meet strong multi-year AI-related demand, further solidifying its market position.
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: 331.210
Low
290.00
Averages
348.25
High
400.00
Current: 331.210
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.
