On January 9, TSMC (TSM.N) unveiled revenue figures that surpassed market projections, significantly bolstering investor confidence in the sustained global expansion of artificial intelligence (AI) spending through 2026. According to the data, TSMC's revenue for the fourth quarter of the previous year witnessed an approximate 20% year-on-year surge, soaring to NT$1.05 trillion (equivalent to US$33.1 billion). This figure comfortably outperformed the market consensus estimate of NT$1.02 trillion.

As the preferred chip foundry for NVIDIA and a pivotal chip manufacturer for Apple, TSMC is poised to capitalize on the robust sales anticipated for the iPhone 17 series. Since the onset of the AI boom, TSMC has emerged as one of the foremost beneficiaries, thanks to its indispensable role in fabricating cutting-edge AI accelerators.

Next week, TSMC is set to disclose its comprehensive quarterly financial results and offer insights into its projected capital expenditures for 2026. Several brokerage firms, including JPMorgan, have revised upwards TSMC's target price, driven by expectations of substantial revenue growth and enhanced profitability.