Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) has once again underlined its central role in the artificial intelligence boom, posting a fourth-quarter profit that comfortably exceeded market expectations and highlighted the depth of demand for advanced chips.
Net profit for the final three months of the year rose 35% from a year earlier to about $16 billion, while revenue climbed just over 20% to roughly $33 billion.
Both figures came in ahead of analysts’ forecasts, reinforcing the view that spending on AI-related infrastructure remains resilient despite concerns about overheating in parts of the technology market.
The results were well-flagged, which helps explain why the shares dipped slightly on the day.
Even so, the stock has risen almost 17% over the past month and about 59% over the past year, reflecting sustained enthusiasm for companies at the heart of AI supply chains.
TSMC, the world’s largest contract chipmaker, supplies semiconductors used in everything from smartphones to high-end processors for data centres.
Heavy investment by global technology groups in servers and computing power has fed directly into its order book. Looking ahead, the company expects capital expenditure to reach as much as $56 billion in 2026, signalling confidence in long-term demand.
Geopolitics remain a complicating factor. US pressure to localise chip production and rising costs linked to overseas expansion are challenges, but management insists the long-term growth story for advanced semiconductors remains intact.