TSMC(US:TSM) Xinda Securities·2026-01-18 12:26Investment Rating - The industry investment rating is "Positive" [2] Core Insights - The semiconductor industry is experiencing significant growth, with TSMC projecting a 30% increase in sales for 2026, driven by strong AI demand and an increase in capital expenditures [3][4] - The report highlights the potential for price increases in 8-inch wafer foundry services due to rising demand for AI-related Power ICs and improved capacity utilization [3] - The report suggests focusing on upstream opportunities in the semiconductor supply chain, particularly those benefiting from AI demand [3][4] Summary by Sections Industry Performance - The electronic sub-sectors have seen substantial increases, with the semiconductor sector up by 16.51% year-to-date and 5.33% in the past week [3][10] - Notable stock performances include TSMC (+5.80%) and Micron Technology (+5.12%) in the recent week [3][12] Company-Specific Insights - TSMC's net profit for Q4 2025 reached NT$505.7 billion, a 35% year-on-year increase, exceeding market expectations [3] - TSMC's AI business revenue is expected to exceed 10% by 2025, with a projected CAGR of 55%-59% for AI revenue from 2024 to 2028 [3] Recommendations - The report recommends monitoring companies such as Industrial Fulian, Huadian Co., and others in the AI sector, as well as equipment and materials suppliers that may benefit from the AI demand surge [4]