Taiwan Semiconductor Shows AI Megatrend Remains Strong After Record Q4 Results

Taiwan Semiconductor Manufacturing Company (NYSE: TSM) reported strong fourth‑quarter 2025 financial results that suggest the artificial intelligence (AI) megatrend is still very much in motion. The company posted revenue of $33.7 billion, a 20.5 % increase compared with the same period last year, and net income of $16.31 billion, up 35 % year‑over‑year—both figures surpassing analyst expectations. The performance was driven by robust demand for AI‑related chips and advanced process technologies such as 3 nanometer and 5 nanometer nodes, which helped expand gross margins to 62.3 %. High‑performance computing, which is closely tied to AI workloads, accounted for 55 % of total revenue. Senior executives emphasized that demand from cloud providers and other major customers remains strong, reinforcing the view that AI is a long‑term structural driver rather than a short‑lived cycle. To support future growth, Taiwan Semiconductor plans to raise capital expenditures from approximately $40.9 billion in 2025 to between $52 billion and $56 billion in 2026, focusing on advanced technologies that power next‑generation AI systems. Overall, the results and forward guidance provide confidence to investors that AI‑driven semiconductor demand will continue to be a key growth engine for the company and the broader tech sector. #TSMC #AIchips #SemiconductorIndustry #TechGrowth #SlimScan #GrowthStocks #CANSLIM