Wedbush Securities noted that Taiwan Semiconductor Manufacturing (TSM.US) November revenue has slightly surpassed market expectations. Analyst Matt Bryson highlighted that the appreciation of the U.S. dollar provided an additional tailwind, boosting both revenue and gross margins when converted to New Taiwan Dollars, resulting in a larger outperformance in local currency terms compared to USD terms. Bryson maintained an "Outperform" rating on TSMC with a target price of NT$1,700.
He further emphasized that recent discussions indicate "seasonal impacts on AI data center spending are very limited, if not negligible." "As such, our current Q4 earnings model for TSMC may be overly conservative. Looking ahead to 2026, the company has two additional growth drivers: continued average selling price increases and a further shift in product mix toward more advanced processes, including 2nm wafers, both of which could deliver higher upside than current projections," Bryson added.
TSMC released its November 2025 earnings report on December 10, 2025. Key figures showed that while revenue declined slightly month-over-month, it still posted strong year-over-year growth. The company reported November revenue of NT$343.61 billion, up 24.5% YoY but down 6.5% from October. The chipmaker, which supplies Apple, Nvidia, and AMD, among other global tech giants, recorded October sales of NT$367.473 billion. Cumulative revenue from January to November reached NT$3.474 trillion, a 32.8% increase compared to the same period in 2024.
CEO C.C. Wei previously stated that advanced process capacity remains insufficient, revealing that current capacity falls short by about three times based on major clients' product roadmaps and growth expectations. Wei projected that AI accelerator revenue from 2024 to 2029 would grow at a higher compound annual growth rate (CAGR) than the previously estimated 44%–46%, with updated figures to be released early next year.
Q4 operations are expected to continue benefiting from strong demand for advanced processes. The AI market has shown highly positive developments recently, with robust customer outlooks reinforcing the company's confidence in the AI megatrend.
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