Overview
- TSMC reported Q4 2025 revenue of about $33.7 billion and EPS of $3.14 with gross and operating margins of roughly 62.3% and 54%, topping expectations.
- Advanced nodes drove results as 3nm, 5nm and 7nm processes made up about 77% of wafer revenue, with a 28%/35%/14% split respectively.
- The company guided Q1 2026 revenue to $34.6–$35.8 billion with higher margin targets and set 2026 capital spending at $52–$56 billion, with a possible lift toward $58 billion in 2027.
- Shares of chip equipment makers and designers rallied on the report, analysts raised price targets, and estimates tallied roughly $6 billion in paper gains for major long‑term holders.
- Leaders said customers are booking capacity two to three years ahead, a rapid 2nm ramp is planned for 2026 with around 30% produced in the U.S., and continued wafer price increases are expected as debate over an AI bubble persists.