Taiwan Semiconductor Manufacturing Stock Jumps On Robust AI Chip Demand. Is It Time to Sell or Double Up on the Stock?
The Motley Fool • • business
Key Points:
- Taiwan Semiconductor Manufacturing (TSMC) reported strong Q4 results with revenue up nearly 26% to $33.7 billion and earnings per ADR rising 40% to $3.14, driven by robust demand for AI chips and advanced semiconductor nodes.
- The company projects 2026 capital expenditure between $52 billion and $56 billion, significantly above analyst expectations, reflecting confidence in continued AI data center expansion and strong customer demand.
- TSMC maintains a near-monopoly on cutting-edge chip manufacturing, with 77% of Q4 revenue from 7nm and smaller nodes and 28% from its latest 3nm technology, supporting high gross margins that rose to 62.3% in Q4.
- High-performance computing
