TSMC Shatters Records: Q4 Profit Soars 27% to $15.02 Billion
Foundry giant TSMC just posted a number that makes even the most bullish Wall Street analyst look conservative.
The Chip Engine Driving Everything
Forget the hype cycles—real value gets built on silicon. While crypto markets swing on sentiment, TSMC's latest earnings report delivers a masterclass in tangible, demand-driven growth. That 27% year-over-year jump to a staggering $15.02 billion in quarterly profit isn't magic; it's the direct result of powering the world's relentless demand for AI, high-performance computing, and next-gen devices.
Beyond the Headline Numbers
This isn't just about one company's success. It's a leading indicator for the entire digital economy. Every advanced blockchain, every AI model, every piece of cutting-edge fintech hardware relies on the foundational technology TSMC manufactures. Their record profit signals robust underlying demand across sectors supposedly in their own bubbles.
A Reality Check for Speculative Finance
Here's the cynical jab for the traditional finance crowd: while hedge funds debate macro trends and central bank pivots, a semiconductor company quietly printed more profit in three months than most of them will see in a decade. It turns out building the physical infrastructure of the future is a better business than betting on its derivatives.
The takeaway? True technological advancement, the kind that enables everything from decentralized networks to quantum computing, has a very profitable, very real-world foundation. And it's growing faster than the speculation surrounding it.
AI demand and smartphone chips push production and outlook higher
Fourth-quarter revenue strength came from full use of advanced chip capacity. TSMC ran its 3-nanometre lines at full tilt, helped by Apple’s iPhone 17 lineup using the A19 chip. AI orders stayed strong at the same time.
Galen Zeng, a senior research manager at IDC, said both trends combined to drive the quarter’s performance. He added that demand for AI infrastructure did not cool late in the year.
According to IDC, it now expects TSMC revenue to grow 25% to 30% in 2026 in U.S. dollar terms. That is higher than the prior forecast of 22% to 26%.
The upgrade is tied to rising orders for AI server accelerators and growing output from the next 2-nanometre process. The company plans to share first-quarter and full-year guidance during its earnings call scheduled for 0600 GMT on Thursday.
By market value, TSMC sits at roughly $1.38 trillion, making it Asia’s most valuable listed firm. That valuation is more than double that of South Korean rival Samsung Electronics. The stock’s performance backed that gap. Shares listed in Taipei climbed 44.2% last year, well ahead of the 25.7% gain in the stock market.
Investment spending remains heavy. TSMC is putting $165 billion into new chip plants in Arizona. U.S. Commerce Secretary Howard Lutnick said on a podcast released last week that the company is set to invest more in the country.
Trade policy remains a question mark. It is not clear how tariffs under U.S. President Donald TRUMP will affect TSMC. Taiwan exports to the United States face a 20% tariff, but chips are excluded.
Meanwhile, ahead of its Q4 earnings release, Nvidia stock traded at $184.97, down 0.1% on the day. The stock remains above its 50-day and 200-day moving averages at $182.70 and $178.30. Support sits between $178 and $180. Resistance remains near $207, a level rejected in December.
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