TSMC Shares Hit Record High as AI Chip Demand Fuels Strong Q4 Earnings

Taiwan Semiconductor Manufacturing Company (TSMC) shares surged to a record high in Taipei trading on Friday, underscoring strong investor confidence driven by robust fourth-quarter earnings and sustained demand from the artificial intelligence industry. As the world’s largest contract chipmaker, TSMC continues to benefit from the global AI boom, reinforcing its position as a cornerstone of the semiconductor supply chain.

TSMC (TW:2330) rose as much as 3% during the session to reach an all-time high of T$1,740.0. The rally followed a sharp 4.4% overnight jump in the company’s U.S.-listed shares, signaling strong momentum across global markets. The surge came after TSMC reported better-than-expected quarterly results, posting a record-high profit for the fourth quarter as demand for advanced chips remained resilient.

The company’s earnings were largely supported by soaring orders linked to artificial intelligence applications, including high-performance computing, data centers, and next-generation AI accelerators. TSMC’s advanced manufacturing nodes, which are essential for producing cutting-edge chips, have positioned the firm as a key beneficiary of the ongoing AI-driven technology cycle.

Chief Executive Officer C.C. Wei struck an optimistic tone regarding the company’s outlook, suggesting that AI-related demand is unlikely to cool in the near term. While acknowledging expectations of higher costs in 2026 due to expanded capacity and advanced manufacturing investments, Wei emphasized that TSMC’s earnings trajectory is still expected to remain on a growth path. This reassurance helped ease investor concerns around rising capital expenditures and long-term margin pressure.

TSMC is a critical supplier to major U.S. technology companies such as Nvidia and Apple, both of which rely heavily on the company’s advanced semiconductor manufacturing capabilities. Over the past two years, the rapid expansion of artificial intelligence technologies has significantly boosted chip demand, further strengthening TSMC’s revenue base and global influence.

As AI adoption accelerates across industries, market participants continue to view TSMC as one of the most important AI chip stocks to watch. The company’s record-breaking share price highlights growing confidence that strong AI demand will continue to support earnings growth and long-term shareholder value.