Taiwan Semiconductor Manufacturing Company (TSMC) saw its stock rise following an upward revision of full-year guidance and sustained demand across key end markets. The company reported robust orders for advanced chips, particularly in AI and high-performance computing sectors.
- TSMC raised full-year revenue guidance to $78 billion, up from $74 billion previously
- 25% year-over-year increase in orders for 3nm and 5nm process technologies
- Utilization rates at advanced fabs remain near full capacity through Q4 2025
- Capital expenditure plan maintained at $36 billion for 2026
- TSMC shares rose 6% in pre-market trading following announcement
- Strong demand driven by AI accelerators, cloud infrastructure, and mobile processors
Taiwan Semiconductor Manufacturing Company (TSMC) experienced a notable increase in share prices after announcing revised financial guidance for the fiscal year. The company raised its revenue forecast to approximately $78 billion, up from the previous target of $74 billion, citing strong demand for next-generation semiconductor nodes. This marks a significant uptick in expectations amid continued investment in advanced technology development. The upgrade was driven by elevated demand for TSMC's 3nm and 5nm process technologies, which are critical for AI accelerators, mobile processors, and data center applications. Orders for these leading-edge chips reportedly increased by over 25% year-over-year, with specific demand coming from major clients in cloud infrastructure and consumer electronics. Additionally, TSMC confirmed that utilization rates at its advanced fabrication lines remained near full capacity through Q4 2025. Analysts noted that the revised guidance reflects not only stronger-than-expected sales but also improved visibility into future demand patterns. The company’s capital expenditure plan remains unchanged at $36 billion for the year, underscoring long-term commitment to expanding production capacity in Taiwan, Japan, and the U.S. These investments are expected to support growth beyond 2026. The market reacted positively, with TSMC's shares rising nearly 6% in pre-market trading. Investors welcomed the confirmation of sustained demand momentum, especially as global tech firms continue scaling up their AI initiatives. The stock performance also influenced broader semiconductor indices, with peers including AMD and NVIDIA seeing modest gains.