Editing Openai/6968ee10-951c-8011-8e7f-47f6744b86aa (section)

==== 📈 Key Takeaways from TSMC’s Call ====

===== 1) Strong AI-Driven Results =====
* TSMC reported record Q4 2025 profit and revenue, beating expectations with ~35% profit growth and 20-plus % revenue growth — driven largely by AI chip demand. AP News<ref>{{cite web|title=AP News|url=https://apnews.com/article/95de4082d5e36a3c0a0b00f613a5df39|publisher=AP News|access-date=2026-01-16}}</ref>
* Advanced process nodes (especially 3 nm and beyond) are a major revenue driver, with advanced technologies accounting for a large share of wafer revenue. Investors<ref>{{cite web|title=Investors|url=https://www.investors.com/news/technology/tsm-stock-taiwan-semiconductor-q4-2025-earnings/|publisher=investors.com|access-date=2026-01-16}}</ref>

===== 2) Aggressive Capital Expenditure =====
* Capex is rising sharply: TSMC guided to $52–$56 billion in 2026, a ~30-40% increase year-over-year, with a high percentage allocated to advanced nodes and HPC (AI/ML) capacity. Financial Times<ref>{{cite web|title=Financial Times|url=https://www.ft.com/content/a3b4c1ac-f26a-44bd-a605-25603b2a0669|publisher=Financial Times|access-date=2026-01-16}}</ref>
* Management emphasized multi-year demand for AI capacity, indicating current build-outs are driven by customer signals rather than short-term inventory. AInvest<ref>{{cite web|title=AInvest|url=https://www.ainvest.com/news/tsmc-lit-ai-fuse-56b-capex-bombshell-chip-stocks-flying-2601/|publisher=ainvest.com|access-date=2026-01-16}}</ref>

===== 3) Supply Constraints Still Persist =====
* Foundry capacity — especially on leading nodes and advanced packaging (CoWoS) — remains tight, fueling the need for expanded facilities and packaging lines. Wedbush Investors<ref>{{cite web|title=Wedbush Investors|url=https://investor.wedbush.com/wedbush/article/marketminute-2026-1-9-the-linchpin-of-the-ai-era-tsmc-prepares-to-set-the-tone-for-2026|publisher=Wedbush Investors|access-date=2026-01-16}}</ref>
* TSMC’s U.S. expansion (Arizona fabs) and long lead times underscore structural supply shortages over the next several years. AInvest<ref>{{cite web|title=AInvest|url=https://www.ainvest.com/news/tsmc-lit-ai-fuse-56b-capex-bombshell-chip-stocks-flying-2601/|publisher=ainvest.com|access-date=2026-01-16}}</ref>

===== 4) Confidence Amid “AI Bubble” Concerns =====
* Management conveyed confidence in long-run demand, pushing back against market talk of an AI spending bubble and suggesting durable customer pull. Financial Times<ref>{{cite web|title=Financial Times|url=https://www.ft.com/content/a3b4c1ac-f26a-44bd-a605-25603b2a0669|publisher=Financial Times|access-date=2026-01-16}}</ref>