TSMC Reports Strong Revenue, Boosting Outlook for AI Spending

Glonghui Jan 9th｜TSMC (TSM.US) revenue has exceeded market expectations, reinforcing confidence in the continued growth of global artificial intelligence spending through 2026. According to data released by Nvidia’s preferred chip foundry, its fourth-quarter revenue last year increased by about 20% year-over-year to NT$1.05 trillion (US$33.1 billion), higher than the market’s average estimate of NT$1.02 trillion. As a key chip manufacturer for Apple, TSMC may also benefit from strong sales of the iPhone 17 series, which is set to launch in September. Since the AI boom, TSMC has been one of the biggest beneficiaries, continuing to benefit from its central role in advanced AI accelerator manufacturing. TSMC will announce its full quarterly results next week and provide capital expenditure guidance for 2026. Several brokerages, including JPMorgan, have raised their target price for TSMC this year, citing expectations of strong revenue growth and improved profitability.