Taiwan Semiconductor Manufacturing expects 2026 revenue to grow by 30% with capital expenditure up to $56 billion. December quarter revenue reached TWD 1 trillion, a 6% increase sequentially, while gross margin rose to 62.3%. Management’s optimistic outlook on AI demand and revenue growth leads to a higher fair value estimate of TWD 2,700.
The company’s track record of conservative guidance and potential indirect benefits from Meta Platforms instill confidence in achieving TWD 8.8 trillion in sales by 2029. Increased AI spending visibility, especially with Google and Broadcom, contributes to higher revenue and EPS estimates. Taiwan Semiconductor’s growth also benefits wafer fab equipment makers like Lam Research and ASML.

Read more at Morningstar: Taiwan Semiconductor Earnings: Buoyant Guidance Backed by Voracious AI Demand