Tsmc, record quarter chases away the ghosts of the AI bubble
The Taiwanese chip giant recorded another record quarter, posting a 35% jump in profits
Tsmc's growth does not stop. The Taiwanese semiconductor giant recorded another record quarter, posting a 35% jump in profits that revived investor confidence in artificial intelligence. And perhaps wiping out the 'bubble' rumours that had circulated in recent months.
In more detail, the group reported a net profit of NT$505.7 billion, about USD16 billion, for the December quarter, exceeding market expectations. Quarterly revenues amounted to USD 33.1 billion, helping to take annual sales over USD 100 billion for the first time in 2025. A symbolic milestone that underlines the company's central role in the new digital economy.
The fourth-quarter gross margin of 62.3 per cent was described as 'impressive' and far exceeded market expectations, especially as the business continues to scale and move to more advanced nodes with less impact on margins, according to several analysts.
The company also estimates revenue growth of close to 30% in 2026, well above the average analysts' forecasts. And to these numbers, the reaction of the markets was immediate, with several stocks in the sector veering into positive territory (above all Arm and Asml, a key supplier of semiconductor production machinery, whose shares rose 7.6% in Europe, taking its capitalisation to over USD 500 billion).
And it has to be said that, also in light of the quarterly results, the Taiwanese company has made it known that it is preparing for one of the most aggressive investment phases in its recent history, putting up to USD 56 billion of capital expenditure on the table by 2026.
