Taiwan Semiconductor Manufacturing Company reported a 27% year-over-year revenue surge in Q4 2025, driven by strong demand for advanced logic chips. The results signal resilience in the semiconductor supply chain and bolster investor sentiment across three major tech equities.
- TSMC reported $28.3 billion in Q4 2025 revenue, a 27% year-over-year increase
- Gross margin reached 63.8%, driven by 3nm and 2nm process node efficiency
- Over 60% of TSMC’s 2025 production capacity is pre-booked
- AMD stock rose 6% on improved confidence in AI chip supply chain
- NVIDIA shares gained 4% following stronger-than-expected demand signals
- TSMC’s 2026 capital spending forecast at $40 billion
Taiwan Semiconductor Manufacturing Company (TSMC) delivered a standout performance in its fourth-quarter results, reporting $28.3 billion in revenue—up 27% from the same period in 2024. The figure surpassed analyst expectations by 11% and marked the highest quarterly revenue in the company’s history. Gross margin expanded to 63.8%, reflecting pricing power and improved manufacturing efficiency on 3nm and 2nm process nodes. The strong results were fueled by robust demand from leading AI chipmakers, including NVIDIA and AMD, which rely heavily on TSMC’s foundry services. Orders for advanced semiconductors extended through 2026, with TSMC confirming that over 60% of its 2025 production capacity is already pre-booked. This demand momentum underscores the ongoing acceleration in AI infrastructure investments globally. Investors responded positively, pushing TSMC’s stock up 9% in after-hours trading. The rally has ripple effects: AMD shares rose 6% on renewed confidence in its upcoming AI processor roadmap, while NVIDIA saw a 4% post-earnings gain amid speculation about expanded supply agreements with TSMC. These three equities now represent a core strategic cluster within the global semiconductor ecosystem. Market analysts note that TSMC's performance serves as a leading indicator for broader tech sector health. With capital expenditures forecasted at $40 billion for 2026, the company's expansion plans signal sustained confidence in long-term demand. Equipment suppliers like ASML and Lam Research are also poised to benefit from increased orders tied to advanced lithography and process control systems.