Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) fourth quarter revenue surges by 20% beyond expectations, indicating resilient AI spending in 2026.

The world's largest chip foundry, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US), performed better than market expectations in the latest quarter, despite ongoing concerns about a bubble in the industry. This reinforces the optimistic outlook for global artificial intelligence spending in 2026. As the core chip manufacturer for NVIDIA Corporation (NVDA.US), Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR saw a 20% increase in revenue in the fourth quarter, reaching 1.05 trillion New Taiwan Dollars (approximately $33.1 billion) according to monthly data calculations. This number exceeds the market's average estimate of 1.02 trillion New Taiwan Dollars. Boosted by demand for data center chips, NVIDIA Corporation executives expressed optimism about brighter revenue prospects this week, somewhat offsetting concerns in the market about the speed of infrastructure development potentially outpacing the spread of AI applications. Additionally, as a major manufacturer of chips for Apple Inc., Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR may also benefit from strong sales of the iPhone 17 launched in September last year. Since the AI wave sparked by ChatGPT, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR has been one of the biggest beneficiaries, thanks to its core position in manufacturing advanced AI accelerator chips. From global tech giants like Microsoft Corporation to Meta Platforms Inc., there are plans to collectively invest over a trillion dollars in data center projects to seize the opportunities of AI proliferation. However, investors are concerned that the planned capacity may ultimately exceed actual demand. Furthermore, the cyclical nature of many data center investment arrangements has made Wall Street uneasy, with investments and funds flowing back and forth between OpenAI and a few listed tech giants. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR will release its complete quarterly financial report next week and announce capital expenditure guidance for 2026. Before the U.S. tariffs took effect last year, customers rushed to stock up on chips, leading Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR to receive emergency orders. The company has allocated $40-42 billion in capital expenditure for expansion and upgrades in 2025. As Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's stock price hits record highs, research analysts are rushing to raise the target price for this chip manufacturing giant, showing the market's continued bullish sentiment towards it. Since the beginning of this year, several brokerages, including JPMorgan, have raised their target stock price for Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, citing expectations of strong revenue growth and improvement in CKH HOLDINGS profit. JPMorgan analyst Gokul Hariharan wrote in a report: "We expect 2026 to be another strong growth year for Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR," citing increased demand for the company's most advanced chip manufacturing technology and pricing improvements. "Gross margin is also expected to rise."