By Adam Spatacco
Publication Date: 2026-01-22 17:00:00
Key Points
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Taiwan Semi’s revenue and profits are accelerating thanks to robust demand for artificial intelligence (AI) chips.
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Nvidia and Broadcom outsource their manufacturing needs to Taiwan Semi.
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Taiwan Semi’s current growth trajectory suggests even better days are ahead for leading chip players.
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As earnings season comes into focus, technology investors are once again predominantly focused on demand trends around artificial intelligence (AI) more than anything else.
Last week, Taiwan Semiconductor Manufacturing (NYSE: TSM) kicked things off with its fourth-quarter and full-year 2025 earnings report. Spoiler alert: If you’re an investor in Nvidia or Broadcom, you should be jumping for joy.
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Let’s dig into Taiwan Semi’s earnings results and explore why the company’s outlook bodes well for top players in the semiconductor industry.
Image source: Taiwan Semiconductor Manufacturing.
Taiwan Semi just reported monster earnings
In the fourth quarter, Taiwan Semi generated $33.7 billion in revenue. This was about $300 million above the company’s previously issued guidance, and represented growth of 25% year over year and 2% sequentially.
Perhaps even more encouraging is the company’s profitability profile. In Q4, TSMC posted a gross margin of 62% — roughly 330