Nvidia’s Go-To Chipmaker TSMC Sees Revenue Top Estimates
(Bloomberg) -- Taiwan Semiconductor Manufacturing Co.’s revenue topped estimates, reinforcing hopes of sustained global AI spending in 2026 despite concerns about an industry bubble.
The go-to chipmaker for Nvidia Corp. reported a roughly 20% rise in December-quarter revenue to NT$1.05 trillion ($33.1 billion), based on calculations off monthly figures. That compares with an average projection for NT$1.02 trillion.
Shares in ASML Holding NV, which supplies chipmaking machines to TSMC, rose about 6% to a record high. TSMC’s ADRs gained about 1% in premarket US trading.
Boosted by demand for data center chips, Nvidia executives expressed optimism this week about a brighter revenue outlook, countering fears that infrastructure construction is outpacing AI adoption. TSMC, a major manufacturer of chips for Apple Inc., may have gotten a boost also from strong sales of the iPhone 17 launched in September.
TSMC has been one of the biggest beneficiaries of the post-ChatGPT AI boom, riding its central role in manufacturing advanced AI accelerators. Global technology giants from Microsoft Corp. to Meta Platforms Inc. are spending upwards of $1 trillion collectively on data center projects to capitalize on growing AI adoption, but investors worry that the capacity in train will surpass actual usage.
The circular nature of many of those data center arrangements, in which investments and spending go back and forth between OpenAI and a few publicly traded tech giants, also concerns Wall Street.
What Bloomberg Intelligence Says
TSMC’s traditional seasonality lull is being neutralized by the demand for its leading-edge nodes — key to producing AI and Apple chips — as demonstrated by 4Q sales of NT$1.05 trillion outpacing guidance. We see this positive momentum continuing to support flat quarter-over-quarter guidance vs. historical drops. The focus is now on TSMC’s 4Q results call on Jan. 15, when management should confirm a solid sales-growth trajectory, and issue a 2026 capital-spending budget of $48 billion-plus (based on our calculations), up 20% vs. 2025.
TSMC will report full quarterly earnings next week, along with a forecast on capital spending for 2026. Last year, the company benefited from rush orders when clients stockpiled chips before US tariffs kicked in. It earmarked $40 billion to $42 billion for expansion and upgrades in 2025. Multiple brokerages including JPMorgan Chase have raised their price targets on TSMC since the start of the year, citing expectations of strong revenue growth and improving profitability.
