TSMC's earnings call reports good news, and the stock price of 2330 hits a new high again

Taiwan Semiconductor Manufacturing Company (2330.TW) held a recent investor conference that shocked the market, with the 2026 capital expenditure budget raised to $52 billion to $56 billion, far exceeding market expectations. This not only confirms that AI demand has not peaked but also indicates that the expansion speed of 2-nanometer and advanced packaging (CoWoS) capacity will surpass expectations. At the same time, Q4 profits and gross margins both hit record highs. TSMC led the Taiwan stock market to a new high today, with the stock closing at NT$1,740, up nearly 3%.

TSMC Investor Conference Delivers Outstanding Results

Although TSMC has been actively expanding overseas factories in recent years, coupled with the significant appreciation of the New Taiwan Dollar last year, the company has demonstrated a highly resilient profit structure. TSMC’s Q4 2025 financial report shows consolidated revenue of NT$1.05 trillion, an increase of 20.5% year-over-year, with quarterly revenue surpassing NT$1 trillion for the first time. The gross margin for Q4 2024 reached 62.3%, far exceeding the 53% of the same period last year and the high end of analyst estimates, indicating that even with high overseas manufacturing costs, the company can maintain high profitability through full capacity utilization and pricing strategies. Quarterly EPS reached NT$19.50, pushing the full-year 2025 EPS to a record high of NT$66.25. This reflects that major clients such as NVIDIA, Apple, and AMD, amid capacity competition, have accepted TSMC’s pricing strategies and confirms that the AI chip market has excellent gross margin structures and rigid demand.

2026 Capital Expenditure Raised to $52 Billion to $56 Billion

TSMC has raised its 2026 capital expenditure (Capex) budget to $52 billion to $56 billion, significantly higher than the market’s original expectation of $45 billion, and a substantial increase from the actual expenditure of about NT$409 billion in 2025. According to the plan, about 70% to 80% will be invested in advanced process technology, with the remainder allocated to specialty processes and advanced packaging. TSMC stated that although capital expenditure will increase significantly over the next three years, achieving a long-term gross margin of over 56% is feasible.

The long-delayed Taiwan-U.S. trade agreement has finally been finalized, with Taiwan’s exports to the U.S. facing tariffs reduced from 20% to 15%. Taiwanese companies have committed to investing at least $25 billion in expanding advanced semiconductor, energy, and artificial intelligence (AI) businesses, including the $16.5 billion previously pledged by TSMC. Sources indicate that TSMC plans to add at least four more wafer fabs in Arizona.

(Taiwan-U.S. trade agreement finalized! $500 billion investment in exchange for 15% tariffs)

TSMC Leads Taiwan Stock Market Rally, 2330 Shares Hit New High at NT$1,740

TSMC’s ADR surged 4.44% yesterday, closing at $341.64, driving a rally in the overall chip sector.

Today, 2330 also led the Taiwan stock market higher, with the index closing at 31,408 points, up 598 points or 1.94%. TSMC (2330) closed at NT$1,740, up NT$50 or 2.96%, hitting a new high.

This article, “TSMC Investor Conference Brings Good News, 2330 Shares Reach New High,” first appeared on Lian News ABMedia.