Taiwan Semiconductor Manufacturing Company (TSMC) is nearing a critical technical buy point after reporting a 16% year-over-year revenue increase in Q4 2025, driven by robust demand from AI chipmakers. The move strengthens investor confidence in the semiconductor leader and could trigger broader market momentum in tech equities.
- TSMC reported Q4 2025 revenue of $21.4 billion, a 16% YoY increase
- Gross margin reached 59.7%, reflecting strong cost and production efficiency
- TSMC’s capacity utilization at 97%, indicating near-full production levels
- TSMC shares approaching $160 technical buy point, up 5.3% post-report
- SOXX ETF and key peers NVDA and AMD saw gains following TSMC’s results
- Advanced node demand from AI chipmakers remains a dominant growth driver
Taiwan Semiconductor Manufacturing Company (TSMC) has approached a pivotal technical buy point following a standout quarterly performance, with revenue rising 16% year-over-year to $21.4 billion in Q4 2025. This surge reflects strong demand from major clients, including NVIDIA (NVDA) and AMD, whose next-generation AI accelerators rely heavily on TSMC’s advanced 3nm and 2nm fabrication processes. The company's gross margin expanded to 59.7%, underscoring pricing power and operational efficiency amid elevated production volumes. The positive sales report comes at a crucial time for the semiconductor industry, as global AI infrastructure spending continues to accelerate. TSMC’s capacity utilization rates have reached 97%, signaling near-full production levels and supporting expectations for sustained revenue growth. Analysts note that the company's ability to scale advanced node output positions it as a central enabler of the AI boom. Market reaction has been immediate, with TSMC’s shares gaining 5.3% in early trading, outpacing the SOXX semiconductor ETF by 2.1 percentage points. The rally has also lifted related names, including NVDA, which rose 3.8%, and AMD, up 3.1%, suggesting a broad-based tech sector boost driven by TSMC’s performance. Technical indicators now point to a breakout above the $160 resistance level, a key threshold for institutional investors.