New York, Jan 15, 2026, 04:54 EST — Premarket
- TSMC shares dipped roughly 1% in premarket trading despite the chipmaker reporting a record quarterly profit.
- Investors are balancing a larger 2026 spending plan with margin goals and demand fueled by AI.
- Semiconductor stocks are tracking each other as the U.S. market opens.
Taiwan Semiconductor Manufacturing Co’s shares listed in the U.S. dropped 1.2% in premarket trading Thursday, despite the chipmaker posting a record-breaking fourth-quarter profit that surpassed expectations. (Reuters)
This print matters because TSMC dictates the rhythm for the entire chip supply chain — spanning from equipment manufacturers to leading AI chip designers. The market is weighing whether the upcoming phase hinges on demand or spending.
This comes as investors shift their attention to 2026 budgets, with chipmakers once more discussing capacity expansion instead of cuts.
TSMC reported a 20.5% jump in fourth-quarter revenue to NT$1,046.09 billion, while net income surged 35.0% to NT$505.74 billion. Gross margin hit 62.3%. The company projects first-quarter revenue between $34.6 billion and $35.8 billion, with gross margin forecasted at 63% to 65%. It also announced a 2026 capital budget of $52 billion to $56 billion for plant and equipment. CFO Wendell Huang noted that demand for its advanced process technologies remains robust as they head into the first quarter. (TSMC)
On the earnings call, CEO C.C. Wei sounded more cautious about the AI surge. “I’m also very nervous about it,” he admitted, citing the scale of the spending plan and the importance of verifying customer demand. (Investing)
The impact spread through the sector. In Europe, ASML shares surged to an all-time high, briefly vaulting the chip-equipment giant’s market cap beyond $500 billion, Reuters reported. The jump came as investors digested TSMC’s earnings and saw potential upside. (Reuters)
TSMC stock now hinges on whether its stronger profits and raised near-term revenue outlook can outweigh concerns that increased investment and overseas expansion might limit short-term gains.
Traders will be eyeing how much of the recent surge in AI-related chip stocks is already priced in, as well as how the market responds to TSMC’s margin goals while it ramps up advanced manufacturing.
The downside risk remains. Should AI demand falter or cost pressures from new fabs and strained supply chains increase more quickly than anticipated, that confident spending plan could end up pinching profitability.
