TSMC revenue tops estimates as Nvidia demand supports AI chip sales

Taiwan Semiconductor Manufacturing Co.'s December-quarter revenue rose about 20% to NT$1.05 trillion, above Bloomberg-based estimates, and the company will report full quarterly results and a 2026 capital spending forecast next week.

Taiwan Semiconductor Manufacturing Co. reported December-quarter revenue that exceeded estimates and will publish full quarterly results and a capital spending forecast for 2026 next week. Bloomberg Terminal calculations showed roughly a 20% increase in revenue to NT$1.05 trillion, above the average projection of NT$1.02 trillion. The rise is linked to demand for data center chips amid AI-related spending and may also reflect strong sales of the iPhone 17. Multiple brokerages have raised price targets on the company citing expectations of stronger revenue and improving profitability. Key details: - December-quarter revenue was reported at about NT$1.05 trillion, roughly 20% higher year-over-year based on Bloomberg Terminal calculations. - The average projection cited was NT$1.02 trillion, so the reported monthly figures exceeded that estimate. - Demand for data center chips tied to AI deployments and comments from Nvidia executives are cited as supporting factors. - The company also supplies chips for Apple, and strong iPhone 17 sales are mentioned as a possible additional boost. - Industry-wide investments by major technology firms on data center projects are reported to amount to upwards of $1 trillion collectively, a context for TSMC’s demand. - Last year TSMC earmarked $40 billion to $42 billion for expansion and upgrades in 2025, and brokerages including JPMorgan have since raised price targets. Summary: The stronger-than-expected monthly revenue figures reinforce expectations of sustained AI-related demand for advanced chips while also coinciding with investor concerns about whether capacity additions will match future usage. TSMC will release full quarterly earnings next week and provide guidance on capital spending for 2026, which market participants will watch for clearer signals about the company’s near-term outlook.