Taiwan Semiconductor Manufacturing (TSM) inventory has hit a brand new all-time excessive of 348.42, rallying practically 7% on Thursday. The world’s largest contract chipmaker posted stronger-than-expected fourth-quarter earnings and income, which fueled not simply TSMC however different chip shares too. The corporate reported non-GAAP earnings of $3.14 per share for the quarter, topping market expectations. Income rose to $33.73 billion, up about 26% from a yr earlier and barely increased than the prior quarter.
Following the discharge of its fourth quarter outcomes, TSMC executives additionally stated the Taiwan-based producer is ready to see AI-related income develop at a compounded annual price (CAGR) within the high-50% vary by 2029. “We’re making ready to extend our capability and stepping [up] our capex funding to help our prospects’ future development,” TSMC chief government C.C. Wei stated in a name with analysts following the outcomes. “Our conviction within the multiyear AI megatrend stays sturdy, and we consider the demand for semiconductor[s] will proceed to be very basic.”
As talked about beforehand, TSMC’s strong earnings report additionally sparked different high chip shares, reigniting that market. Nvidia (NVDA) shares rallied 2% in early commerce, whereas AMD can be up over 5%. Intel (INTC), in the meantime, is down a fraction of a % after topping its AI inventory rivals to open the week.
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Moreover, TSMC’s climb additionally cooled ever-growing considerations of an AI bubble on the inventory market. Chief government Wei stated that whereas the bubble talks made him barely nervous, he spoke to prospects who assured him that the rising AI demand was actual. “They present[ed] me the proof that AI actually assist[s] their enterprise,” Wei stated, including that “AI is actual — not solely actual, [but it] is beginning to develop into our every day life.”
Trying forward, TSMC (TSM) expects first-quarter 2026 income of $34.6 billion to $35.8 billion. Gross margin tasks at 63% to 65%, with an working margin of 54% to 56%, primarily based on present exchange-rate assumptions. The corporate additionally stated it plans 2026 capital spending of $52 billion to $56 billion, reflecting ongoing funding in superior semiconductor manufacturing and capability growth.
