ALBAWABA- Taiwan Semiconductor Manufacturing Company (TSMC) exceeded market expectations, reinforcing optimism that global spending on artificial intelligence will remain strong in 2026 despite concerns about inflated valuations.
The world’s largest contract chipmaker reported a 33.1% year-on-year rise in quarterly revenue to NT$1.05 trillion (about US$32.9 billion), based on monthly figures, beating the average forecast, according to DPA.
TSMC, a key supplier to Apple and Nvidia, likely benefited from resilient iPhone demand alongside continued strength in advanced chips used for AI accelerators, Bloomberg News reported. The company has been among the biggest winners of the post-ChatGPT AI boom, given its dominance in cutting-edge semiconductor manufacturing.
Investor optimism pushed TSMC shares up as much as 6.9%, their biggest rise since April, to a new record high. The rally followed Goldman Sachs raising its target price to NT$2,330, citing expectations of another year of robust growth.
TSMC’s surge helped drive a broader rally in Asian technology stocks, with investors pouring fresh liquidity into the AI sector even as debate intensifies over whether valuations are becoming overstretched.
