Taiwan Semiconductor (TSM) Stock: AI Chip Demand Fuels Record 2025 Revenue Growth

TLDR

• December 2025 revenue totaled NT$335.0 billion, down 2.5% from November but up 20.4% year-over-year
• Full year 2025 revenue reached NT$3.81 trillion, a 31.6% increase from 2024
• Q4 2025 revenue came in at NT$1.046 trillion compared to NT$868.42 billion in Q4 2024
• AI infrastructure and high-performance computing drove strong demand throughout 2025
• Detailed Q4 earnings and 2026 guidance scheduled for January 15 release

Taiwan Semiconductor Manufacturing Company reported December 2025 revenue of NT$335.0 billion. That’s approximately $10.6 billion.

Taiwan Semiconductor Manufacturing Company Limited, TSM

The figure fell 2.5% from November’s results. But compared to December 2024, revenue climbed 20.4%.

The world’s largest contract chipmaker released the numbers Friday. Despite the monthly dip, the company’s annual performance tells a stronger story.

TSMC’s full year 2025 revenue totaled NT$3.81 trillion. That represents a 31.6% jump over 2024.

The growth came from sustained demand in AI applications. High-performance computing also contributed to the surge.

Advanced semiconductor nodes remained in high demand throughout the year. Customers continued ordering cutting-edge chips.

Fourth quarter revenue reached NT$1.046 trillion. That compares to NT$868.42 billion in Q4 2024.

The quarterly growth mirrors the annual trend. AI infrastructure investments kept orders flowing.

TSMC supplies chips to Apple and Nvidia. These partnerships have paid off as AI spending accelerates globally.

Some consumer electronics segments showed weakness. But AI demand more than offset the softer areas.

Strong Year Despite Monthly Fluctuation

Monthly revenue variations are normal in the semiconductor industry. December’s sequential decline doesn’t change the bigger picture.

The 31.6% annual revenue growth reflects TSMC’s market dominance. The company produces the most advanced chips available.

AI applications require increasingly powerful semiconductors. This trend continued throughout 2025 without slowing.

TSMC’s 3-nanometer manufacturing process attracts premium customers. The upcoming 2-nanometer technology will further cement its position.

The company has invested in new facilities worldwide. Plants in the United States and Japan are under construction.

Earnings Report Coming Soon

TSMC will release full Q4 earnings on January 15. Investors will get detailed financial results and 2026 guidance then.

The report will include revenue projections for the coming year. Capital expenditure plans will also be announced.

Analysts expect commentary on AI chip demand sustainability. The company’s advanced manufacturing capabilities give it a competitive edge.

TSMC’s international expansion continues. These facilities aim to diversify production geographically.

The Taiwan-based manufacturer enters 2026 from a position of strength. AI applications show no signs of slowing as the new year begins.

The January 15 earnings call will provide capital spending guidance. Industry watchers anticipate continued investment in advanced manufacturing technology.