TSMC’s Earnings Beat Triggers Fresh Analyst Upgrades on AI-Fueled Demand

Overview

• TSMC reported fiscal Q4 2025 revenue of NT$1,046.09 billion, net income of NT$505.74 billion, and diluted EPS of NT$19.50, with revenue up 20.5% year over year and profit up 35.0%.
• The company guided roughly 4% sequential revenue growth for Q1, a break from typical seasonality that analysts attribute to deliberate capacity planning and higher wafer shipments for high‑performance computing customers.
• Needham raised its price target to $410 with a Buy rating following the results, and BofA lifted its target to $470 citing technology leadership, pricing power, and strong utilization at premium nodes.
• Jim Cramer characterized the quarter as one of the strongest he has seen, said AI chip demand is “off the charts,” and noted TSMC may need to spend more than $50 billion to keep up with current orders.
• Coverage underscored TSMC’s central role as the leading contract foundry for major chipmakers such as Nvidia, AMD, and Broadcom, with sustained AI and HPC demand driving multi‑year investment needs.