Taiwan Semiconductor Manufacturing Co. (TSM) has reported record quarterly financial results, including a 35% increase in its fourth quarter 2025 profit.
The Taiwanese company, which makes about three-quarters (75%) of the world’s microchips and processors, posted results that handily beat the consensus forecasts on Wall Street.
Revenue in the October through December quarter totaled 1.046 trillion new Taiwan dollars ($33.73 billion U.S.), surpassing the NT$1.034 trillion expected among analysts.
Sales were up 20.5% from a year earlier and surpassed NT$1 trillion for the first time.
Net income in the period came in at NT$505.74 billion versus the consensus estimate of NT$478.37 billion. The company’s profit rose 35% from the same period of 2024.
Management attributed the strong results to rising demand for artificial intelligence (AI) microchips and processors.
Taiwan Semiconductor, which is the world’s largest contract chipmaker, has now posted year-over-year profit growth for eight consecutive quarters.
Looking ahead, Taiwan Semiconductor executives guided revenue for the current quarter to hit between $34.6 billion U.S. and $35.8 billion U.S., which would represent 38% year-over-year growth at the midpoint.
As Asia’s largest technology company, Taiwan Semiconductor has benefited from the AI boom, producing advanced microchips for clients such as Nvidia (NVDA) and Apple (AAPL).
To keep up with the growing demand for AI chips, Taiwan Semiconductor said its capital expenditures are expected to reach between $52 billion U.S. and $56 billion U.S. this year.
TSM stock has risen 58% over the last 12 months to trade at $327.11 U.S. in New York.
