AI Demand Propels TSMC to Record January Revenue and Stock Highs

2026-02-11 companies

Hsinchu, Wednesday, 11 February 2026.
TSMC’s January revenue surged 37% to $12.7 billion, fueled by relentless global AI chip demand. This record performance signals robust sector growth and pushed shares to new highs.

Unprecedented Financial Momentum

Taiwan Semiconductor Manufacturing Company (TSMC) has set a blistering pace for the fiscal year 2026. On Monday, February 9, the chipmaking giant reported consolidated net revenue of NT$401.26 billion ($12.73 billion) for January [1][3]. This figure represents a robust 36.8% increase compared to January 2025 and a 19.8% jump from December 2025 [3]. The performance underscores the semiconductor industry’s continued reliance on TSMC’s advanced manufacturing capabilities, exceeding the company’s earlier guidance which had projected roughly 30% full-year growth [1].

Market Reaction and AI Dominance

Investors reacted swiftly to the earnings beat. Shares of TSMC (NYSE: TSM) rose approximately 2.5% in early trading on Tuesday, reaching a record high following the announcement [1][6]. The driving force behind these numbers is the relentless global appetite for artificial intelligence hardware. By 2025, High-Performance Computing (HPC) had already grown to account for 58% of the company’s total revenue, with advanced 7-nanometer processes or smaller making up 74% of wafer revenue [4][6]. TSMC currently commands an estimated 90% of the market share for advanced AI chips, serving key clients such as Nvidia, Apple, and AMD [1][6].

Aggressive Capital Expansion

To sustain this technological lead, TSMC is committing massive capital to infrastructure expansion. The company plans to allocate up to $56 billion for capital expenditures in 2026, marking an increase of approximately 30% to 40% compared to 2025 levels [1][6]. CEO C.C. Wei has indicated that between 70% and 80% of this budget is specifically earmarked for advanced process technologies [6]. This elevated investment strategy is expected to persist over the next three years to address the structural increase in demand for AI-related computation [1].

Strategic Geopolitics

Beyond the financials, TSMC is maneuvering through a complex political landscape regarding U.S. trade policy. Reports indicate the company may benefit from a potential tariff carve-out for U.S. technology companies [1]. This exemption would likely be tied to TSMC’s substantial pledge to invest approximately $165 billion in U.S. manufacturing facilities, a move that could shield American customers from planned semiconductor tariffs and further entrench TSMC as an indispensable partner in the Western technology supply chain [1].

Sources

Semiconductors Earnings