What TSMC's latest numbers say about the AI story

By Steve Goldstein

TSMC reported 37% sales growth for January.

Contract manufacturer Taiwan Semiconductor Manufacturing Co. reported huge monthly sales-growth numbers for January that analysts say points to robust demand for artificial-intelligence usage.

The supplier to Nvidia said its January sales jumped 37% from the year-earlier month to 401.3 billion New Taiwan dollars ($12.72 billion).

Taiwan Semi shares rose 3% in premarket trade. The stock has jumped 70% over the last 52 weeks.

JPMorgan analyst Gokul Hariharan said that the figures position TSMC (TSM) (TW:2330) to potentially surpass the high end of its guidance both for revenue, which would be $35.8 billion at the top of the range, and gross margin, at 65%.

"We expect the stock to continue outperforming in the coming months, supported by potential positive AI commentary for 2026 from key vendors, with AI remaining the primary focus for investor fund flows," he told clients in a note.

The top hyperscalers - Meta Platforms, Microsoft, Alphabet and Amazon - have set an aggregate capital expenditure of $645 billion this year. "We believe these comments act as a tailwind for TSMC stock performance given sustained AI demand outlook," said Hariharan.

A sales-desk note from Citi agreed with the JPMorgan analyst comment. "It is another strong start with TSMC putting in early progress to keep the beat cycle going. Bodes well [that] the state of AI spending remains strong and is [a positive] read for the Semi Cap names as this underpins healthy capex going forward," the note said.

-Steve Goldstein

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02-10-26 0741ET