Taiwan Semiconductor Manufacturing Company reported Q4 revenue of $29.8 billion, surpassing expectations and marking a 41% year-over-year increase, reinforcing investor confidence in AI-driven semiconductor demand. Jim Cramer highlighted the results as a pivotal moment for tech equities.
- TSMC reported Q4 2025 revenue of $29.8 billion, a 41% year-over-year increase.
- Net profit reached $13.2 billion, up 39% from the prior year.
- NVIDIA accounts for over 25% of TSMC’s 2025 revenue.
- TSMC’s 2026 capital expenditure is $44 billion, focused on global capacity expansion.
- TSMC shares rose 22% in January 2026 following earnings.
- Semiconductor ETF SOXX rose 15% in the same month.
Taiwan Semiconductor Manufacturing Company (TSMC) delivered a standout performance in its latest quarter, reporting revenue of $29.8 billion for Q4 2025, a significant 41% increase from the same period the previous year. The results exceeded analyst forecasts, which had projected $27.5 billion, driven by robust demand for advanced chips used in artificial intelligence infrastructure. TSMC also reported a net profit of $13.2 billion, up 39% year-over-year, reflecting strong margins and efficient production scaling across its 3nm and 5nm fabrication lines. The company’s success underscored broader trends in the semiconductor industry, where AI-related chip demand has surged since late 2024. TSMC's customers, including NVIDIA, Apple, and AMD, have intensified orders for high-performance computing chips, with NVIDIA alone accounting for over 25% of TSMC’s 2025 revenue. The company’s capital expenditure for 2026 is set at $44 billion, focused on expanding capacity in Arizona, Japan, and Taiwan. Jim Cramer, host of CNBC’s 'Mad Money,' cited TSMC’s results as a catalyst for renewed optimism in AI stocks. He emphasized that TSMC’s performance signals sustained demand beyond short-term hype, noting that the company’s ability to scale production while maintaining profitability sets a benchmark for the sector. Cramer added that the rally in TSMC’s shares—up 22% in the month following earnings—has had a ripple effect across the Nasdaq, lifting semiconductor ETFs such as SOXX by 15% over the same period. Market participants now view TSMC not just as a supplier, but as a bellwether for AI adoption. Investors are also closely monitoring the company’s upcoming guidance for Q1 2026, with expectations of continued growth driven by data center expansion and next-generation AI model development.