In 2026, Taiwan Semiconductor Manufacturing (TSMC) continues its upward trend, with shares up over 12% after a 55% return in 2025. U.S. support allows TSMC to operate its Nanjing facility smoothly. TSMC’s earnings report for Q4 2025 beats estimates, with revenue at $33.7 billion and a forecast of close to 30% revenue growth in 2026.

TSMC’s stock surged after the U.S. granted a license for its operations in China. The company’s Nanjing facility contributes about 2.4% of total revenue. TSMC also saw a boost in stock price on a day when the entire semiconductor sector was performing well.

TSMC’s earnings report for Q4 2025 exceeded expectations, with revenue growth at 25.5% and earnings per ADR up 40% compared to the previous year. The company forecasts nearly 30% revenue growth for 2026 and increased long-term revenue and AI accelerator-specific revenue outlooks.

Analysts are bullish on TSMC, with a consensus price target of $365 implying 7% upside, while Needham and Company raised their price target to $410, indicating a 20% potential upside. With strong performance and forecasts, TSMC remains a top pick in the semiconductor and AI investment theme.

Read more at Nasdaq.: TSMC’s Strong Guidance Supports the Stock’s Hot Start to 2026