TSMC posts record quarter, says AI demand is 'endless' and raises capex plans

TSMC reported record fourth-quarter results and told analysts that AI demand is "endless." The company posted net income of NT$505.7 billion (about $16 billion) for the quarter, up 35 percent year over year and above analyst expectations, and revenue of $33.7 billion, a 25.5 percent increase from the same period last year.

TSMC said it expects nearly 30 percent revenue growth in 2026 and plans to spend between $52 billion and $56 billion on capital expenditures this year, up from $40.9 billion in 2025. TSMC’s chief executive, Wei, told analysts he had checked with cloud providers before committing to the spending increase: "I want to make sure that my customers’ demand are real.

So I talked to those cloud service providers, all of them," Wei said. "The answer is that I’m quite satisfied with the answer. Actually, they show me the evidence that the AI really helps their business." Those comments stand in contrast to recent warnings from industry leaders, with Google CEO Sundar Pichai warning of "irrationality" in the AI market and OpenAI’s Sam Altman saying investors are "overexcited" and that "someone" will lose a "phenomenal amount of money," according to the report.

The earnings report arrived the same day the US and Taiwan finalized a trade agreement that cuts tariffs on Taiwanese goods to 15 percent from 20 percent and commits Taiwanese companies to $250 billion in direct US investment.

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Business, Tsmc, Us Taiwan Trade, Arizona Fab, Wei, Ai Demand