TSMC Reports Stellar Q4 Results and Capital Spending Plans
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
0mins
Should l Buy NVDA?
Source: Fool
- Significant Revenue Growth: TSMC's Q4 revenue surged 25.5% year-over-year to $33.73 billion, with a gross margin of 62.3%, reflecting strong market demand and profitability, thereby reinforcing its leadership position in the semiconductor industry.
- Capital Expenditure Plans: Management anticipates capital spending between $52 billion and $56 billion in 2026, with approximately 40% of revenue allocated to capital expenditures, indicating strong confidence in future growth and ongoing investment in the AI market.
- Increase in Advanced Process Share: Three-nanometer chips accounted for 28% of total wafer revenue, five-nanometer for 35%, and seven-nanometer for 14%, totaling 77% of revenue from the most advanced processes, highlighting the robust demand driven by AI applications and TSMC's technological edge.
- Geopolitical Risk Management: TSMC is actively expanding into the U.S. and Japan to reduce reliance on Taiwan, enhancing the stability and resilience of its global supply chain, ensuring competitiveness in a rapidly changing market environment.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 184.970
Low
200.00
Averages
264.97
High
352.00
Current: 184.970
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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.
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- Market Competition: This initiative is seen as a strategic move by OpenAI to capture market share from Nvidia in the rapidly growing AI infrastructure sector, highlighting its ambitions in the Indian market.
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- Decay Risk: Due to daily rebalancing, leveraged ETFs face decay risk; if the underlying asset drops by 10%, a 2x leveraged ETF would drop by 20%, requiring a higher recovery gain to break even, thus increasing long-term holding risks.
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