Taiwan Semiconductor $TSM ( ▲ 2.01% ) is kicking off the year with serious momentum. Shares moved higher in premarket trading after the chip giant reported January revenue jumped 37% year over year to NT$401.3 billion, or about $12.7 billion, well above its full-year growth outlook of 30%.
That kind of upside surprise is turning heads, especially this early in the year.
AI Demand Keeps the Fabs Busy
The growth wasn’t random. TSMC $TSM is riding a wave of demand for advanced AI chips, producing cutting-edge processors for major customers like Nvidia $NVDA ( ▼ 0.48% ) and Apple $AAPL ( ▼ 0.31% ) . As AI models get bigger and more complex, the need for high-performance chips keeps climbing and TSMC sits right in the middle of that supply chain.
This surge suggests AI-driven chip orders are still accelerating, not cooling off.
Spending Big to Stay Ahead
To keep up, TSMC $TSM is opening the wallet. The company recently laid out plans to spend between $52 billion and $56 billion in capital expenditures in 2026, a sharp jump from $40.9 billion in 2025. That level of investment shows just how confident management is in long-term demand, particularly from AI and high-performance computing.
It also reinforces TSMC’s role as the backbone manufacturer behind much of the world’s most advanced tech.
Momentum Builds After a Blowout Quarter
January’s numbers don’t stand alone. They build on a strong fourth quarter where TSMC $TSM beat expectations on revenue, earnings, and its outlook for sales and margins. In other words, the company isn’t just having a good month — it’s extending a streak of outperformance.
For investors watching the AI trade, TSMC’s latest report is another sign that the chip boom still has fuel in the tank.