Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) on Friday delivered stronger-than-expected results on a monthly and quarterly basis, with December-quarter revenue exceeding market forecasts.

The contract chipmaker generated about 1.05 trillion New Taiwanese dollars ($33.1 billion) in revenue during the October–December period, marking roughly 20.5% growth from a year earlier and surpassing the analyst consensus estimate of 1.02 trillion New Taiwanese dollars.

The result landed within the company's previously issued guidance range of $32.2 billion to $33.4 billion.

AI Demand And Customer Momentum

Optimism around artificial intelligence spending continues to support Taiwan Semiconductor's outlook. Executives at Nvidia Corp. (NASDAQ:NVDA) expressed confidence in their revenue trajectory this week, pushing back against concerns that data-center construction is outpacing AI adoption, Bloomberg reported.

Taiwan Semiconductor, which also manufactures chips for Apple Inc. (NASDAQ:AAPL), may have seen additional support from strong sales of the iPhone 17, launched in September, Bloomberg added.

The chipmaker has emerged as one of the biggest beneficiaries of the post-ChatGPT AI boom, given its central role in producing advanced AI accelerators.

Technology companies, including Microsoft Corp. (NASDAQ:MSFT) and Meta Platforms Inc. (NASDAQ:META), are collectively spending more than $1 trillion on data center projects to capture the growing demand for AI.

Analyst View

The company will report full fourth-quarter earnings on January 15, along with an updated outlook for the current quarter, full year, and a forecast for 2026 capital spending.

Wall Street analysts have raised their price forecasts for Taiwan Semiconductor, citing the chipmaker's pivotal role in the AI hardware race and its growing dominance of advanced chip capacity.

Goldman Sachs raised its forecast by 35% to 2,330 New Taiwanese dollars, citing 30% revenue growth projections for 2026.

JPMorgan expects operating margins to climb to a three-year high above 50%, according to Bloomberg.

TSM Price Action: Taiwan Semiconductor shares were up 0.36% at $319.17 during premarket trading on Friday, according to Benzinga Pro data.

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