Taiwan Semiconductor Manufacturing Company Ltd. (TSM) is set to report its fourth-quarter 2025 earnings on Jan. 15. With a strong position in AI chip demand and advanced semiconductor technology, TSM is expected to deliver another robust quarter. Revenue is projected to grow by approximately 22% year-over-year, driven by the increasing adoption of AI in various sectors.

TSM’s revenue growth is supported by its leadership in 3nm and 5nm manufacturing nodes, catering to major chip designers like NVIDIA and Apple. The company’s AI-focused products have seen high demand, showcasing its vital role in AI and high-performance computing applications. However, geopolitical tensions may have impacted TSM’s revenue growth in the last quarter.

While TSM’s revenue outlook appears positive, rising operational costs are expected to impact its gross margins in the fourth quarter. The company’s global expansion efforts, including new fabs in various locations, have increased labor and utility expenses. Analysts remain optimistic about TSM’s bottom-line growth, with earnings expected to rise by 21.4% year-over-year.

In the broader Computer and Technology sector, other stocks like Micron Technology (MU), NVIDIA (NVDA), and Amtech Systems (ASYS) are worth considering. These stocks have strong growth potential, with Micron Technology’s earnings forecasted to increase by 278.3%, NVIDIA’s by 55.9%, and Amtech Systems’ by 760% in the upcoming fiscal year.

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Read more at Nasdaq: AI-Driven Demand for Advanced Chips Likely to Boost TSM’s Q4 Revenues