Taiwan Semiconductor Manufacturing Company

(AI video summary)

This video was created on 12 February 2026 for IG audiences by ausbiz.

NYSE code: TSM

TSMC’s impressive financial results

Taiwan Semiconductor Manufacturing Company (TSMC) recently reported its financial results, achieving a record high share price driven by robust demand for its advanced artificial intelligence (AI) chips. The company recorded its highest ever monthly revenue for January, totalling US$12.7 billion, and a net income of US$33.7 billion for the fourth quarter (Q4) that exceeded expectations. TSMC also achieved record gross and net profit margins of 62.3% and 48.3%, respectively.

The company holds a 71% market share in the global chip market and over 90% for the most advanced chips used in AI applications. TSMC plans to allocate up to US$56 billion in capital expenditure (capex) this year, marking a 40% increase from the previous year.

Geopolitical and operational outlook

Despite its impressive performance, TSMC faces potential geopolitical risks associated with its location in Taiwan. Analysts acknowledge Taiwan Semiconductor's critical role, supplying advanced chips essential for companies like Apple and Tesla. Concerns remain about potential conflicts over Taiwan, but TSMC's establishment of manufacturing facilities in Europe and the United States (US) indicates efforts to mitigate these risks.

Investment outlook

While the stock has performed strongly, TSMC TSMC trades at a price‑earnings‑to‑growth (PEG) ratio below 1.0, suggesting earnings growth continues to outpace valuation. The company is viewed as a more stable long‑term semiconductor exposure than individual chip designers, given its diversified customer base.