Key Takeaways TSM's 2025 revenues rose 35.9% to $122.42B as EPS climbed 51.3% to $10.65.TSM's growth was driven by higher 3nm and 5nm chip orders for AI servers and high-performance computing.TSM is expanding fabs globally to meet AI demand and target 2026 growth.Taiwan Semiconductor Manufacturing Company (TSM) , also known as TSMC, continues to benefit from the global surge in demand for artificial intelligence (AI) chips. In 2025, the company’s revenues jumped 35.9% year over year to $122.42 billion, whil ...

Core Viewpoint - Taiwan Semiconductor Manufacturing Company Limited (TSM) is experiencing a slowdown in stock momentum after a significant rally, indicating potential shifts in market dynamics [1]. Group 1: Company Performance - The stock of TSM was previously rated as a "buy" on October 23rd, 2025, suggesting a positive outlook prior to the observed slowdown [1].

The logo of the Taiwan Semiconductor Manufacturing Company (TSMC) is seen at its 2-nanometer fabrication plant at Nanzih Technology Industrial Park in Kaohsiung on December 23, 2025. (Photo by I-Hwa Cheng / AFP via Getty Images)AFP via Getty ImagesOver the past year, Taiwan Semiconductor Manufacturing Company (NYSE: TSM) has experienced one of the most impressive rallies among global technology stocks, with its share price increasing approximately 65% as investors adapted to the positive effects of artifici ...

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Summary of Key Points from the Conference Call Industry Overview - The semiconductor industry is experiencing a shift towards AI-driven demand, with a preference for AI semiconductors over non-AI counterparts. This trend is expected to continue into 2026, with both logic and memory sectors being attractive for investment [6][10][87]. Key Companies Mentioned - **TSMC**: Identified as a top pick in the AI semiconductor space, with expected revenue CAGR of 60% from AI semis between 2024 and 2029 [6][33]. - **SMIC**: Mentioned as a significant player in the semiconductor industry [6]. - **MediaTek, Alchip, GUC, Winbond, Phison, Nanya Tech**: Other notable companies highlighted for their roles in the semiconductor landscape [6]. Core Insights - **Demand Drivers**: - Tech inflation is anticipated to impact demand due to rising costs in wafers, OSAT, and memory, creating margin pressures for chip designers [6]. - AI cannibalization is a concern, as AI technologies may replace certain human jobs, affecting overall demand [6]. - The proliferation of generative AI is expected to drive demand across various verticals, including robotics and AI glasses [6]. - **Market Dynamics**: - The semiconductor supply chain is prioritizing AI semiconductors, leading to shortages in non-AI semiconductors [6]. - The memory sector's stock prices are seen as leading indicators for logic semiconductors, with an attractive industry view on Greater China technology semiconductors [16]. Financial Metrics and Valuation - **TSMC**: - Current share price is 1,760 TWD with a target price of 2,088 TWD, indicating a 19% upside potential [8]. - Expected P/E ratios for 2025, 2026, and 2027 are 26.6, 18.9, and 15.7 respectively, with EPS growth rates of 46%, 40%, and 21% [8]. - **SMIC**: - Current share price is 77.0 HKD with a target price of 80.0 HKD, indicating a 4% upside potential [8]. - Expected P/E ratios are not meaningful (NM) due to negative growth projections [8]. Potential Risks - **Supply Chain Issues**: The semiconductor supply chain is facing challenges, including inventory management and the prioritization of AI semiconductors, which could lead to shortages in non-AI products [6][14]. - **Economic Factors**: Rising costs and inflation in the tech sector may impact overall demand and profitability for semiconductor companies [6]. Additional Insights - **Capex Trends**: Major cloud service providers (CSPs) are expected to increase capital expenditures significantly, with a projected 65% year-over-year increase in Q3 2025 [52]. - **AI Semiconductor Market Size**: The global semiconductor market size is projected to reach $1 trillion by 2030, driven largely by cloud AI [85]. This summary encapsulates the critical insights and data points from the conference call, providing a comprehensive overview of the current state and future outlook of the semiconductor industry, particularly in relation to AI technologies.

January 19, 2026 10:47 AM GMT TSMC | Asia Pacific TSMC investor feedback post- 4Q25 results Investors are asking more strategic questions – not just reacting to earnings – a few days after the print, as well as asking what's next. We recently raised our PT to NT$2,088 and predicted a 4-5% move higher after the strong beat (see our CDI). Taiwan shares rose 4% over the past two trading days, offsetting profit taking pressure and showing that results were indeed strong. However, investors are now asking more s ...

Global Research HOLT TMT Global Tech Update – State of Tech, Semi Strength vs Software Reset, & Idea Generation Tech Sector fundamentals remain strong; valuation is high (but not extreme) vs. history Software vs. Semiconductors – Making sense of the disparity in performance and identifying opportunities for 2026 Topical idea generation screens tailored for the current market environment Equities ab 15 January 2026 Jonathan Carson HOLT Sector Specialist jonathan.carson@ubs.com +1-212-882 5659 This report has ...

For TSMC ( TSM ) stock, my investment stance is a Strong Buy, as it is no longer a cyclical manufacturer. TSMC has now become the Sovereign Utility of Computation. The strong buy thesis is based on theAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking ...

Core Insights - The U.S.-Taiwan deal aims to expand chip production capacity in the U.S., but analysts believe it will not fully reduce reliance on Taiwan's advanced semiconductors in the near term, keeping the "silicon shield" intact [1][5] Industry Overview - Taiwan is a dominant player in global chip production, with the Taiwan Semiconductor Manufacturing Company (TSMC) producing a significant portion of the world's advanced chips. Approximately one-third of global demand for new computing power is fabricated in Taiwan [2] Strategic Importance - Taiwan's central role in the semiconductor supply chain is crucial for maintaining its de facto autonomy and deterring potential Chinese aggression, a concept referred to as the "Silicon Shield" [3] Trade Deal Details - Under a recent trade agreement, the Taiwanese government will provide $250 billion in credit to its chip and technology companies to enhance production capacity in the U.S. Additionally, Taiwanese companies will receive higher quotas for tariff-free chip imports into the U.S. In exchange, the U.S. will reduce tariffs on most goods from Taiwan from 20% to 15% and eliminate tariffs on certain categories [4] Production Goals and Challenges - The objective is to relocate 40% of Taiwan's semiconductor supply chain to the U.S., but experts express skepticism about the feasibility of this plan due to Taiwan's strict policies on keeping advanced technology domestically [5] Technology Restrictions - Taiwanese authorities have implemented the N-2 rule, which restricts TSMC's overseas fabrication plants from operating technologies that are at least two generations behind those developed in Taiwan [6]

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is positioned for significant growth, potentially reaching a $2 trillion valuation by 2026, driven by increasing demand for AI infrastructure and its strategic expansions [3][4]. Company Overview - TSMC is currently valued at $1.7 trillion and would need an 18% increase in share price to reach a $2 trillion valuation, equating to approximately $380 per share [4]. - The stock has appreciated 62% over the past year, indicating strong market performance [4]. Industry Context - Major tech companies, referred to as hyperscalers, are expected to invest $527 billion in AI infrastructure by 2026, a 13% increase from earlier forecasts [7]. - McKinsey & Company projects that $5 trillion will be spent on AI workloads by 2030, indicating a robust demand for chips [8]. Competitive Position - TSMC plays a crucial role in manufacturing chips for leading companies like Nvidia, AMD, and Broadcom, which are heavily investing in AI technologies [9]. - The company is expanding its manufacturing capabilities globally, including new facilities in Japan and Germany, and considering a $300 billion expansion in Arizona [11][12]. Financial Metrics - TSMC's forward price-to-earnings (P/E) ratio is currently 24, which may not seem low, but the company is trading about 22% below its peak forward earnings levels [13][15]. - Analysts expect TSMC to generate $13.26 in earnings per share (EPS) by 2026, and at a peak forward P/E of 30, the stock could reach $390 per share [15][16]. Investment Thesis - TSMC is viewed as a strong investment opportunity within the AI infrastructure sector, offering reasonable pricing relative to its growth prospects [17].