By Adam Spatacco
Publication Date: 2026-01-22 17:00:00
Key Points
Taiwan Semi’s revenue and profits are accelerating thanks to robust demand for artificial intelligence (AI) chips.
Nvidia and Broadcom outsource their manufacturing needs to Taiwan Semi.
Taiwan Semi’s current growth trajectory suggests even better days are ahead for leading chip players.
- 10 stocks we like better than Taiwan Semiconductor Manufacturing ›
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.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
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
