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This followed its fourth-quarter earnings report on January 15, which fueled optimism about artificial intelligence.As it beat Wall Street expectations, buoyed by AI investment from hyperscalers, investors are also piling into the stock because of its future positive guidance. The semiconductor manufacturer has seen its stock price rise 69% over the year.In its latest Q4 report, it noted diluted EPS of $3.14, beating the $2.94 consensus. Revenue for the quarter came at $33.73 billion, representing a 25.5% increase year-over-year.The growth underscores rapid adoption of TSMC’s most advanced manufacturing nodes. The combined sales of its 3-nanometer, 5-nanometer, and 7-nanometer products accounted for 77% of the company’s total wafer revenue.3-nanometer technology accounted for 28% of total revenue5-nanometer technology accounted for 35%7-nanometer technology accounted for 14%And Wendell Huang, Senior VP and CFO of TSMC, expects this “strong demand for our leading-edge process technologies” to continue into the first quarter of 2026.TSM's stock is up 12% year-to-date.Shutterstock · ShutterstockVeteran analyst Chris Versace noted in TheStreetPro that TSM’s AI-related revenue compound annual growth rate, up mid-to-high 50% between 2024 and 2025, “is a key driver in TSM’s overall revenue CAGR of mid-to-high 30% over the same time frame. That level of AI growth tells us AI-related revenue at TSM will ramp significantly over the coming years and will represent far more than the high-teens total revenue percentage it did in 2025.”Here is how revenue generation looked geographically for TSMC:North America accounted for 74% of total revenue in Q4Asia Pacific accounted for 9%China also accounted for 9%Japan and EMEA(Europe, Middle East and Africa) both accounted for 4% each of the total revenue.The gross margin of 62.3% and the operating margin of 54% indicate significant profitability for the company, a key focus of analysts.However, to maintain these gains, TSMC is also planning an unprecedented level of investment. In its 2026 guidance, the company forecast Capital Expenditures of $52 billion and $56 billion, with a further leg up to $58 billion in 2027. For context, its CapEx for 2025 was $40.90 billion.More Tech Stocks:Morgan Stanley sets jaw-dropping Micron price target after eventNvidia’s China chip problem isn’t what most investors thinkQuantum Computing makes $110 million move nobody saw comingMorgan Stanley drops eye-popping Broadcom price targetApple analyst sets bold stock target for 2026Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,940.01 -4.46 (-0.06%)Dow 3049,359.33 -83.11 (-0.17%)Nasdaq23,515.39 -14.63 (-0.06%)Russell 20002,677.74 +3.18 (+0.12%)VIX15.86 +0.02 (+0.13%)Gold4,595.40 -28.30 (-0.61%)Trending tickersBTC-USD Bitcoin USD 95,137.34 -344.70 (-0.36%)NVO Novo Nordisk A/S 62.33 +5.21 (+9.12%)SMCI Super Micro Computer, Inc. 32.64 +3.22 (+10.94%)APP AppLovin Corporation 568.76 -38.23 (-6.30%)VERO Venus Concept Inc. 8.00 +6.56 (+455.56%)PortfolioSign in to access your portfolioSign inTop gainersIBRX ImmunityBio, Inc. 5.52 +1.57 (+39.75%)AGX Argan, Inc. 383.66 +54.00 (+16.38%)RIOT Riot Platforms, Inc. 19.24 +2.67 (+16.11%)ASTS AST SpaceMobile, Inc. 115.77 +14.52 (+14.34%)FIGR Figure Technology Solutions, Inc. 73.91 +8.99 (+13.86%)Top losersZGN Ermenegildo Zegna N.V. 9.56 -1.46 (-13.25%)SSL Sasol Limited 6.31 -0.84 (-11.75%)TLN Talen Energy Corporation 371.66 -47.41 (-11.31%)CEG Constellation Energy Corporation 307.71 -33.42 (-9.80%)GTM ZoomInfo Technologies Inc. 9.04 -0.96 (-9.65%)Most activeIBRX ImmunityBio, Inc. 5.52 +1.57 (+39.75%)ONDS Ondas Holdings Inc. 12.16 -0.66 (-5.15%)NVDA NVIDIA Corporation 186.23 -0.76 (-0.41%)INTC Intel Corporation 46.96 -1.35 (-2.78%)BBAI BigBear.ai Holdings, Inc. 6.12 -0.05 (-0.81%)Top economic eventsEarnings eventsMy earnings eventsEarnings events