TSMC(US:TSM) Guolian Minsheng Securities·2026-01-18 07:32Investment Rating - The report suggests a positive investment outlook for the AI hardware sector, highlighting strong demand for AI computing power and significant capital expenditure growth from TSMC in 2026 [5][19]. Core Insights - TSMC's Q4 2025 revenue reached $33.7 billion, exceeding Bloomberg's consensus by 3.3%, with a gross margin of 62.3% and an adjusted net profit of $16.29 billion, surpassing expectations by 10.4% [2][11]. - The HPC segment remains the core growth driver for TSMC, accounting for 55% of Q4 revenue and showing a 48% year-over-year growth, which is expected to continue into 2026 [2][19]. - The SELF DRIVE Act is poised to significantly increase the annual exemption limit for autonomous vehicles from 2,500 to 90,000 units per manufacturer, facilitating large-scale deployment of Level 4 autonomous vehicles [4][17]. - AMD and Intel's server CPU inventories are reportedly sold out, with a projected price increase of up to 15% due to high demand from hyperscale cloud providers [4][18]. Summary by Sections TSMC Performance - TSMC's Q4 2025 revenue was $33.7 billion, with a gross margin of 62.3% and an adjusted net profit of $16.29 billion, all exceeding market expectations [2][11]. - For the full year 2025, TSMC's revenue is projected at $122.56 billion, with a gross margin of 59.9% and an adjusted net profit growth of 552.7% [2][11]. - The company plans a capital expenditure of $52-56 billion for 2026, a significant increase from $40.9 billion in 2025, with expected revenue growth of nearly 30% year-over-year [12][19]. AI Hardware Demand - The report emphasizes strong and certain demand for AI computing power, with TSMC's HPC business expected to account for 58% of total revenue in 2025, growing at 48% year-over-year [5][19]. - The introduction of Anthropic's Cowork feature marks a significant advancement in AI applications, allowing for more autonomous task management and collaboration [3][14]. Autonomous Vehicle Regulations - The SELF DRIVE Act aims to enhance the regulatory framework for autonomous vehicles, proposing to raise the exemption limit for manufacturers significantly, which could accelerate the deployment of autonomous vehicle technology [4][17]. - The bipartisan support for the SELF DRIVE Act indicates a strong political will to advance autonomous vehicle technology in the U.S. [4][17]. Server CPU Market - The server CPU market is experiencing a supply-demand imbalance, with AMD and Intel's inventories reportedly sold out, leading to anticipated price increases of up to 15% [4][18]. - The demand surge is primarily driven by hyperscale cloud providers upgrading their server architectures [4][18].