TSMC will report full earnings on January 15 and is expected to announce a 2026 spending budget of at least $48 billion.
Taiwan Semiconductor Manufacturing Co. (TSMC) brought in more money than expected last quarter. That’s easing worries that the worldwide push to build artificial intelligence systems might be losing steam.
The company makes chips for Nvidia Corp. and pulled in NT$1.05 trillion ($33.1 billion) during the three months ending in December. That’s about a 20% jump. The figure beat the NT$1.02 trillion analysts had predicted, based on numbers calculated from monthly sales data.
Nvidia officials sounded upbeat this week about future sales tied to data center equipment. They’re pushing back against doubts that companies are building too much infrastructure compared to how much AI is actually being used.
TSMC also produces processors for Apple Inc., and likely saw an added lift from healthy sales of the iPhone 17 that came out in September.
The Taiwanese manufacturer has cashed in big since ChatGPT sparked the AI craze. It holds a key position in making cutting-edge AI chips.
Giant tech companies like Microsoft Corp. and Meta Platforms Inc. are together pouring more than $1 trillion into data center construction to take advantage of growing AI use. But some investors worry the planned capacity will end up exceeding real demand.
Wall Street has also grown uneasy about how spending moves in circles among OpenAI and a handful of big publicly traded tech firms, with money flowing back and forth between them.
Charles Shum tracks the industry for Bloomberg Intelligence. He noted that demand for TSMC’s most advanced manufacturing is offsetting the typical seasonal slowdown. The fourth-quarter sales of NT$1.05 trillion topped company guidance. He expects this strength to keep revenues flat compared to the usual quarterly drops.
Attention now turns to TSMC’s earnings call scheduled for January 15. Executives should lay out solid growth plans then and announce a 2026 spending budget of at least $48 billion — roughly 20% more than this year, based on his math.
The company set aside $40 billion to $42 billion for expansion and improvements in 2025. Last year also saw clients rush to order chips before U.S. import duties took effect.
Several Wall Street firms have bumped up their stock price forecasts for TSMC since January began. JPMorgan Chase is among them, pointing to expectations of strong sales growth and better profit margins.
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