TSM's Q4 revenues are likely to have benefited from AI-driven chip demand, while rising costs due to overseas expansions may have hurt profitability.
TSMC, the world's largest manufacturer of advanced artificial intelligence chips, is expected to post a 27% jump in fourth-quarter net profit to a record due to the seemingly insatiable demand for AI infrastructure.
Big Bank earnings, inflation data, and corporate and economic reports highlight this week's calendar.
TSMC is expected to announce its Q4 2025 earnings on Jan. 15. The first three quarters of the year saw double-digit growth in revenue, net income, and EPS.
Taiwan Semiconductor Manufacturing Company is the critical AI supply chain bottleneck, controlling advanced packaging (CoWoS), with capacity sold out through 2026. TSM is leveraging its dominant position to raise wafer prices, especially for 2nm nodes, supporting robust margin expansion despite limited volume growth. Forward valuation remains attractive: consensus EPS is projected to rise from $10.44 (2025) to $16.57 (2027), with forward P/E compressing from 30x to 19x.
Three members of the trillion-dollar club are semiconductor stocks. While Nvidia receives the lion's share of attention in the artificial intelligence (AI) chip market, Taiwan Semiconductor may quietly be the better long-term opportunity.
Taiwan Semiconductor Manufacturing (NYSE:TSM) shares have been unstoppable in the past year, gaining more than 52%, thanks in part to a handful of incredible quarters.
Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) reported a sharp rise in quarterly revenue on Friday, boosted by accelerating global demand for artificial intelligence chips and its critical role supplying Nvidia, now the world's most valuable company. Revenue for the final three months of 2025 rose 20% year-on-year to around $33 billion, according to figures based on the chipmaker's monthly updates.
TSMC , the world's largest contract chipmaker, reported on Friday fourth-quarter revenue of T$1,046.08 billion ($33.05 billion), according to Reuters calculations based on monthly data the company released.
Shares of Taiwain Semiconductor Manufacturing Co., Ltd. (TSM) gained 2,967% since 1999's first Big Money outlier inflow signal.
TSM hits a 52-week high as AI-driven chip demand fuels strong earnings growth, but premium valuation and near-term risks warrant caution.
TSMC (TSM) concluded the recent trading session at $327.43, signifying a +1.61% move from its prior day's close.