TSMC’s blowout quarter, guidance, and capex plans send AI to the sky
Sherwood News • • business
Key Points:
- TSMC reported strong Q4 results and provided upbeat Q1 guidance, exceeding investor expectations and prompting Needham analyst Charles Shi to raise the stock price target from $360 to $410.
- The company plans significantly higher capital expenditure for 2026 than analysts anticipated, signaling robust demand for wafer fab equipment and boosting the outlook for related sectors.
- TSMC's positive performance and spending plans are benefiting other AI-related stocks, including ASML, Western Digital, Nvidia, Broadcom, AMD, Micron, and server companies like Super Micro Computer and Dell.
- CEO CC Wei emphasized cautious long-term planning and close customer engagement to avoid overinvestment, stating that capex decisions are based on demand forecasts made two to three years
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