Taiwan Semiconductor Manufacturing Corp (NYSE:TSM) delivered another strong quarter, beating expectations on both revenue and EPS. High Performance Computing (HPC) remained a key driver, with revenue up 48% year over year. This outperformance was once again fueled by robust demand for advanced nodes, which management indicated is running at roughly three times available capacity.
Management also issued better-than-expected guidance for Q1 2026, exceeding consensus estimates on both revenue and margins. Progress at the Arizona gigafab continues to advance, with high-volume production for the second fab now pulled forward to the second half of 2027. While management characterized customer confidence in AI-related demand as “satisfactory,” their willingness to commit $52–$56 billion in capital expenditures for 2026 signals a high degree of conviction in the durability of that demand.
For more details, key highlights, and commentary, check out the high-level earnings summary.
