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TSMC Quarterly Revenue Jumps 20% on AI Demand, Topping Forecasts

Analysts point to AI-fueled orders as the catalyst for upgrades, tight advanced-node capacity, lofty margin forecasts, larger multiyear capex.

Overview

  • Revenue for the October–December quarter reached T$1.046 trillion (about $33.1 billion), up 20.45% year over year, beating a T$1.036 trillion LSEG SmartEstimate and landing within prior guidance.
  • Full-year 2025 sales hit a record NT$3.81 trillion, up 31.6%, with December revenue at NT$335.0 billion, down 2.5% month over month but up 20.4% from a year earlier.
  • Wall Street boosted views: Goldman Sachs raised its price target to NT$2,330, JPMorgan to NT$2,100, and Mizuho reiterated NT$2,000, with forecasts calling for roughly 30% growth in 2026 and improving margins.
  • Capacity and investment expectations remain elevated as analysts see tight 3nm/5nm and CoWoS supply through 2027, with Goldman modeling more than $150 billion of capex from 2026 to 2028, including about $54 billion in 2027.
  • The U.S. granted an annual export license covering TSMC’s Nanjing facility to ease equipment imports without individual vendor approvals, while investors look to the Jan. 15 earnings report for 2026 guidance and capex plans.