Taiwan Semiconductor Manufacturing stock has risen strongly on the AI boom and its latest sales figures should support the rally. ...

Core Viewpoint - The technology sector is experiencing a rebound driven by strong earnings guidance, particularly influenced by TSMC's better-than-expected revenue report [1] Group 1: TSMC's Performance - TSMC reported a revenue growth of 32%, surpassing market expectations [1] - This performance has positively impacted its suppliers and clients in the semiconductor industry [1] Group 2: Market Reactions - Following TSMC's announcement, several companies associated with it saw stock price increases, including: - Applied Materials, which rose 2.25% after a previous decline of 3.6% [1] - Lam Research, which increased by 2.4% [1] - Micron Technology, which gained 1.6% [1] - Major clients of TSMC also experienced stock price increases: - Broadcom up by 0.75% [1] - AMD and NVIDIA up by 0.5% and 0.4% respectively [1] - The Nasdaq index, which has a high concentration of technology stocks, saw a pre-market increase of 0.15% after a previous decline [1]

Economic Indicators - The number of Americans filing for initial jobless claims rose by 8,000 to 208,000, compared to the expected 213,000 [1] - U.S. Q3 nonfarm productivity increased by 4.9% quarter-over-quarter, aligning with expectations, while unit labor costs fell by 1.9% quarter-over-quarter, which was weaker than the expected no change [1] - The U.S. trade deficit for October unexpectedly narrowed to $29.4 billion, significantly better than the expected $58.1 billion, marking the lowest monthly level since 2009 [1] - U.S. consumer credit rose by $4.23 billion in November, falling short of the expected $10.1 billion [1] Stock Market Performance - Wall Street's major indices closed mixed, with data storage companies like Seagate Technology and Western Digital experiencing declines of over 7% and 6% respectively [2] - Software stocks also retreated, with Datadog dropping over 7% and Autodesk slipping more than 5% [2] - Defense stocks saw gains after President Trump proposed increasing U.S. military spending to $1.5 trillion by 2027, with AeroVironment rising over 8% and Huntington Ingalls Industries gaining over 6% [2] Corporate News - Asml Holding rose more than 4% after HSBC raised its price target on the stock [10] - Rocket Companies and UWM Holdings advanced over 7% and 5% respectively in pre-market trading due to President Trump's plan to buy $200 billion in mortgage bonds [17] - Revolution Medicines surged over 15% in pre-market trading following reports of Merck's interest in acquiring the company [17] International Market Developments - The Euro Stoxx 50 Index increased by 0.93%, reaching a new record high, driven by strong fourth-quarter revenue from TSMC [9] - German exports unexpectedly fell by 2.5% month-over-month, while imports rose by 0.8% month-over-month [11] - Japan's Nikkei 225 Stock Index closed sharply higher, boosted by strong earnings from Fast Retailing and a weaker yen [13]

Group 1 - TSMC announced a consolidated revenue of approximately NT$335 billion for December 2025, representing a month-over-month decrease of 2.5% but a year-over-year increase of 20.4%, marking a record high for the same period and exceeding NT$300 billion for six consecutive months [1] - The company's revenue for 2025 is projected to exceed NT$3 trillion, reaching approximately NT$3.8 trillion, with a year-over-year growth of 31.6%, setting a new annual revenue record [1] - In Q4 2025, TSMC's revenue surpassed NT$1 trillion, reaching NT$1.04 trillion, with a quarter-over-quarter increase of 4.8% and a year-over-year increase of 16.3%, also exceeding financial forecasts [1] Group 2 - TSMC is accelerating production capacity expansion in advanced processes and advanced packaging due to insufficient capacity amid strong market demand, while reallocating resources from less urgent mature processes [3] - The company is transferring some mature process equipment from Taiwan to its 12-inch facility in Singapore to create more space for advanced process equipment [3] - TSMC's CEO confirmed that Qualcomm is facing capacity shortages, leading the company to negotiate with Samsung for the production of its next-generation processors using Samsung's 2nm process [3] Group 3 - TSMC's board approved an investment of over US$179.25 million to acquire land for a new factory in Phoenix, Arizona, covering approximately 365.27 hectares, which, combined with an existing site, totals over 810 hectares, larger than the Hsinchu Science Park [4] - The land acquisition is expected to support an investment of approximately US$165 billion in building three additional 12-inch wafer fabs, two advanced packaging plants, and a research center to meet market demand [4] - TSMC is also selling machinery to World Advanced Semiconductor Manufacturing Corporation (VSMC) for an estimated US$71 million to US$73 million to enhance its 12-inch wafer capacity [4] Group 4 - VSMC, in collaboration with NXP Semiconductors, plans to establish a 12-inch wafer fab in Singapore with a total investment of approximately US$7.8 billion, enhancing geographical resilience and accelerating the semiconductor ecosystem in Singapore [5] - TSMC stated that the newly acquired land in Arizona is primarily for operational and production use, but the company is currently in a quiet period and cannot comment on the transfer of equipment to Singapore [5]

Group 1 - The core viewpoint of the article highlights the positive impact of TSMC's better-than-expected revenue announcement on ASML's stock price, reflecting investor confidence in the semiconductor equipment sector [1] - TSMC, as a major client of ASML, reported a projected revenue of NT$3.809 trillion (approximately $120.69 billion) for 2025, representing a nearly 32% increase compared to 2024, which exceeded FactSet's forecast of NT$3.797 trillion [1] - The strong performance of TSMC and other semiconductor manufacturers is likely to lead to increased purchases of equipment from companies like ASML, contributing to a 4.8% rise in ASML's stock price [1] Group 2 - Smaller competitor ASM International also saw a stock price increase of 3.3%, indicating a broader positive sentiment in the semiconductor equipment industry [1]

Core Viewpoint - Taiwan Semiconductor Manufacturing Co. (TSMC) reported stronger-than-expected revenue for the fourth quarter, indicating robust global demand for semiconductors [1] Group 1: Company Performance - TSMC's revenue for the fourth quarter exceeded market expectations, reflecting the company's strong position in the semiconductor industry [1] - The company continues to benefit from high demand across various sectors, including automotive and consumer electronics [1] Group 2: Industry Context - The semiconductor industry is experiencing sustained growth, driven by increasing global demand for chips [1] - TSMC's performance is a positive indicator for the overall health of the semiconductor market, suggesting ongoing investment opportunities [1]

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best major stocks to invest in right now. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) received a rating update from Mizuho Securities on January 5, with the firm reiterating a Buy rating on the stock with a NT$2,000 price target. The same day, Goldman Sachs also lifted the price target on the stock to NT$2,330 from NT$1,720 and maintained a Buy rating on the shares. The firm told investors that Taiwan Semiconducto ...

About this content About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business outpu ...

Core Insights - Taiwan Semiconductor Manufacturing Company Limited (TSMC) is recognized for its strong performance and leadership in the semiconductor industry, particularly in advanced manufacturing processes [1][2] - The company has raised its fiscal year 2025 revenue growth guidance to 30% year-over-year, driven by robust demand and effective execution across its diversified business [2] Group 1: Company Performance - TSMC's management has indicated a significant increase in revenue growth expectations, forecasting a 30% increase for fiscal year 2025 [2] - The company has demonstrated strong execution and maintained pricing power, resulting in high margins, with recent results exceeding expectations due to favorable currency movements and market conditions [2] Group 2: Market Position - TSMC is currently the sole provider for all leading-edge AI and smartphone manufacturing, a position that is strengthening as competitors like Intel pull back [2] - The lack of competition in the advanced semiconductor space allows TSMC to sustain good margins despite heavy investments in geographical diversification [2]

Group 1 - Goldman Sachs raised TSMC's target price from NT$1,720 to NT$2,330 while maintaining a "strong buy" rating, reflecting confidence in the company's growth prospects driven by AI demand [1] - TSMC's earnings forecasts for 2026 and 2027 have been increased by up to 15%, with expected revenue growth of 30% in 2026 and 28% in 2027, surpassing previous estimates of 22% [1] - The company plans to invest over $150 billion in capital expenditures from 2026 to 2028 to meet the surging demand for AI chips, including $54 billion in 2027 for new fabs [1] Group 2 - TSMC's CoWoS shipment forecasts for 2026 and 2027 have been raised to 1.185 million and 2.195 million wafers, respectively, indicating stronger market demand related to AI [2] - December revenue reached NT$335 billion, a year-on-year increase of 20.4%, with Q4 total revenue of NT$1.04608 trillion, significantly higher than the previous year's NT$868.46 billion [2] - The company's annual revenue surged by 31.6% due to strong demand for NVIDIA AI chips and the iPhone 17, alleviating concerns about an "AI infrastructure bubble" [2]