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TSMC surges after posting stellar Q4 results, impressive Q1 outlook

The foundry giant plans to spend way more on capex this year to meet growing demand from the AI boom.

1/15/26 5:01AM

TSMC is ripping higher in premarket trading after the world’s largest chip manufacturer posted superb Q4 results and offered a Q1 outlook that was brighter than analysts had anticipated.

The Taiwanese firm posted Q4 earnings per share of NT$19.50 (or $0.63), well above estimates for NT$18.12 (or $0.57).

The company’s ability to turn sales into profits was also better than analysts had projected, with a Q4 gross margin of 62.3% (estimate: 60.6%) and operating margin of 54% (estimate: 50.9%). Both figures exceeded the upper end of management’s Q4 guidance.

The foundry giant had already provided sales figures through December as of last Friday, which totaled NT$1.046 trillion (or approximately $33.7 billion). That figure was ahead of Wall Street’s projection for NT$1.02 trillion.

For the current quarter, management expects revenues to come in between $34.6 billion and $35.8 billion, far exceeding the consensus estimate for $33.2 billion.

Its outlook for margins was similarly robust, with gross margins expected to range from 63% to 65% (estimate: 59.6%). Its operating margin guidance was 54% to 56%, the low point of which is still above the highest analyst’s estimate.

These strong results also fueled gains for ASML, the Dutch maker of lithography machines key to the manufacturing of chips.

The AI boom is in full swing, and everyone’s looking for TSMC to serve as a key partner to meet demand for their products. On their earnings call, management indicated that its capital budget would be between $52 billion and $56 billion this year, with 70% to 80% of that being allocated to advanced process technologies.

This release was preceded by reports that Taiwan expects to sign a trade deal with the US imminently, in which TSMC is expected to play a key part. Taiwanese officials are aiming to get tariffs lowered as well as earn special treatment for semiconductor exports, as the company expands its manufacturing footprint on US soil in return.

The positive reaction this morning looks to be bucking a trend for TSMC’s stock, which has fallen in 12 of the last 13 sessions after reporting quarterly results.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

Revenue of $11.0 billion (estimate: $10.8 billion).
Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

TSMC surges after posting stellar Q4 results, impressive Q1 outlook

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