Taiwan Semiconductor Manufacturing eased market fears with another record quarter for earnings.
TSM – Daily Chart
TSM has settled above the $311.42 resistance, and earnings have pushed it to new highs; $300 is another near-term resistance level.
TSMC, the world’s key producer of AI chips, reported another forecast-beating quarter to push the stock to a record high. The company delivered a 35% jump in fourth-quarter profit, due to strong annual growth. TSMC also said it was developing additional US manufacturing capacity to increase supply.
in the works. However, Wall Street analysts did not expect a swift move to implement the cap, noting that such a measure would require Congressional approval.
An “AI mega trend” is fuelling gains at TSMC, and its customers are “providing strong signals” for future demand, with 2026 revenue projected to increase by almost 30%.
The Taiwanese company builds hardware for Nvidia and Apple and has announced plans to invest up to $100 billion in the US, in addition to $65 billion already earmarked for three plants in Arizona.
The boom in artificial intelligence infrastructure has propelled the company to become Asia’s most valuable listing, with a $1.4 trillion market cap. That’s around double the valuation of Samsung Electronics. TSMC’s capital spending is projected to increase by up to 37% this year to $56 billion. It will also increase “significantly” in 2028 and 2029 due to AI demand, management said.
Management also noted some caution about the long-term demand for AI:
“We’re also very nervous about it. We’re investing $52-$56 billion in capex. If we did not do it carefully, that would be a disaster for TSMC for sure”.
The TSMC report helped boost US stock indices, which had also been suffering from geopolitical fatigue. The Nasdaq 100 gained around 0.40% on Thursday and carried those gains into Friday, with a 0.15% move into the green.
