TSM Stock Today: January 16 record profit, US fab expansion on AI boom
TSM stock today jumps into focus after Taiwan Semiconductor posted a record quarter, powered by AI chip demand and tight capacity. Q4 net profit surged about 35% and EPS hit NT$19.50, while management flagged more US fabs to meet high-performance computing needs. For Singapore investors, this is a key read on Nvidia and Apple supply chains and on 2025 capex trends. We look at near-term catalysts, valuation, technicals, and what to watch next for TSM.
Record Q4 beat and 2025 outlook
TSMC’s Q4 performance topped forecasts, with net profit up about 35% to a record and EPS at NT$19.50, reflecting strong AI and high-performance computing orders. Management pointed to healthier smartphone demand as well. The company highlighted sustained momentum into 2025 as AI workloads scale and advanced nodes stay full. Official results confirmed the EPS figure and ongoing node leadership. TSMC Reports Fourth Quarter EPS of NT$19.50
Management indicated demand remains broad-based, led by AI accelerators and advanced packaging, keeping utilization elevated. Supply remains tight at leading nodes, supporting pricing and mix. The company also flagged more US manufacturing as customers seek geographic diversification. Media reports underscored the record profit and expansion signal, reinforcing a constructive setup for TSM stock today. TSMC smashes forecasts with record profit, flags more US factories
AI chip demand keeps capacity tight
AI chip demand remains the primary tailwind, with advanced nodes and CoWoS capacity running near full. This supports utilization, blended ASPs, and gross margins. Orders for accelerators feed into sustained backlogs, limiting near-term downside risk. For TSM stock today, the combination of full pipelines and disciplined pricing provides earnings visibility into 2025, even as smartphone and auto remain cyclical.
Tighter supply supports sentiment for key customers such as Nvidia and Apple, both reliant on advanced process nodes. Stable visibility at the foundry level reduces execution risk across the ecosystem. For Singapore investors holding US tech, TSMC’s beat signals resilient AI infrastructure demand. It also offsets macro noise, anchoring expectations for chipmakers and suppliers tied to premium nodes and advanced packaging.
US fab expansion and capex plans
TSMC signaled more US fabs on top of its Arizona build, aligning capacity closer to customers and incentives. Added US manufacturing can improve supply chain resilience, meet security preferences, and deepen customer partnerships. For TSM stock today, geographic expansion broadens strategic moat, though the build-out cadence will likely track long-term demand, equipment timing, and local talent availability.
Heavier capex supports future share gains but can weigh on free cash flow near term. US fabs may carry higher operating costs, so execution will be key to protect margins. Watch export controls, customer concentration, and node transition timing. Even so, strong balance sheet, high returns on capital, and sticky AI demand keep a constructive multi-year case intact.
Price, technicals, and what SG investors can do
At the latest close, TSM stock today traded at US$327.11 with a market cap near US$1.77 trillion, P/E about 35.7, and TTM dividend yield around 0.71%. Price sits above the 50-day US$297.49 and 200-day US$245.00 averages. RSI near 65 and MACD positive indicate bullish momentum. Bollinger upper band at ~US$331 suggests a potential resistance zone to monitor.
For SGD-based portfolios, consider USD exposure sizing and staggered entries near moving averages. Track utilization, AI packaging capacity, and US fab milestones. Monitor next earnings on 16 April 2026 and any updates to 2025 capex. Analyst views skew positive, with 19 Buys and 1 Hold. Use pullbacks to manage risk, and reassess if utilization or pricing softens.
Final Thoughts
TSM stock today reflects three clear drivers for 2025: record profitability, tight AI-led capacity, and a larger US manufacturing footprint. The setup favors sustained utilization, firm pricing, and strong returns, even as capex runs high. Technically, shares trend above key moving averages with constructive momentum, while valuation implies investors expect continued AI leadership. For Singapore investors, size positions with USD risk in mind, watch utilization and CoWoS capacity, and track updates on US fab timelines. The next earnings on 16 April 2026 is the key checkpoint for demand, margins, and capex clarity. Manage entries around supports and stick to disciplined risk controls.
FAQs
Why did TSMC beat expectations this quarter?
Robust AI chip demand and full advanced-node utilization drove the beat, alongside healthier smartphone orders. Mix and pricing held up, and advanced packaging remained tight. EPS reached NT$19.50, with management guiding for sustained demand into 2025. The results point to strong execution and continued leadership at leading-edge nodes.
Is TSM stock today attractive for Singapore investors?
It can be, given AI-driven growth, strong margins, and positive technicals. Consider USD exposure, valuation near 35x earnings, and capex intensity. Stagger entries, watch utilization and packaging constraints, and reassess after the next earnings update on 16 April 2026 for confirmation on demand and margins.
How important is the planned US fab expansion?
It strengthens supply chain resilience, meets customer localization needs, and deepens relationships with top chip designers. Near term, it adds capex and potentially higher operating costs. Long term, it supports share gains and strategic positioning in AI, which can aid earnings stability if execution and incentives align.
What are the key risks to monitor now?
Watch capex overruns, US fab execution costs, export controls, and any slowdown in AI accelerator orders. Also track pricing at advanced nodes, smartphone cyclicality, and inventory digestion. A broad risk is macro demand. Any hit to utilization or yields could pressure margins and free cash flow.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
