"Taiwan Semiconductor Manufacturing Company crushed Q4 earnings, reporting record profits that blew past Wall Street's expectations. Revenue hit $33.73 billion against a $1.03 trillion consensus, while EPS came in at $19.50 versus $17.89 expected. TSMC raised Q1 2026 guidance to $34.6-$35.8 billion with gross margins expanding to 63-65%, up from 62.3% last quarter. The market's response was immediate: semiconductor stocks rallied across the board in premarket trading, with ASML crossing $500 billion in market cap."
"What makes this earnings beat matter isn't just the numbers. It's confirmation that AI chip demand isn't slowing. TSMC reported 77% of wafer revenue now comes from advanced nodes (7nm and below), with 3nm accounting for 28% and 5nm taking 35%. Those processes power NVIDIA's H100 and H200 chips, AMD's MI300 accelerators, and Apple's latest processors. When the world's leading foundry says it can't make these chips fast enough, you pay attention."
TSMC posted record Q4 results with $33.73 billion revenue and $19.50 EPS, exceeded expectations, and raised Q1 2026 guidance to $34.6–$35.8 billion with gross margins of 63–65%. Semiconductor stocks rallied in premarket trading and ASML surpassed a $500 billion market cap. TSMC reported 77% of wafer revenue now comes from advanced nodes (7nm and below), with 3nm at 28% and 5nm at 35%, which power NVIDIA H100/H200, AMD MI300, and Apple's processors. TSMC signaled constrained capacity for these advanced chips, creating a supply backdrop that benefits customers relying on the foundry. AMD has emerged as a key beneficiary.
Read at 24/7 Wall St.
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