Yahoo Finance·2026-01-20 12:35Core Insights - Gartner forecasts AI spending to reach nearly $1.5 trillion in 2025 and over $2 trillion in 2026, driven by AI integration in devices and computing infrastructure [1][8] Company Analysis: Taiwan Semiconductor Manufacturing (TSMC) - TSMC, the world's leading chip manufacturer, is expected to see solid demand due to its production of chips for smartphones, smart devices, and high-performance computing [3] - TSMC's fourth-quarter earnings showed a 25% year-over-year revenue increase in U.S. dollars, attributed to advanced AI chip technologies [3] - Revenue from TSMC's smartphone segment increased by 11% year over year, while Internet of Things revenue grew by 3%, and automotive revenue declined by 1% [4] - TSMC forecasts AI chip revenue to grow by over 50% annually through 2029, indicating a strong focus on expanding manufacturing capacity [5] - Apple has secured about half of TSMC's production capacity for its advanced 2-nanometer process technology, which will be utilized for the A20 chip in upcoming iPhones [6] - TSMC's outlook for 2026 predicts a 30% revenue increase in U.S. dollars and a 25% growth in earnings per share to $13.26, suggesting potential for a higher earnings multiple [7]