TSMC Stock Is on a Roll. Rising Sales and Trump Tariff News Could Keep It Going. -- Barrons.com

Dow Jones02-10 16:19

By Adam Clark

Taiwan Semiconductor Manufacturing on Tuesday reported another month of growing revenue. It's a sign of the chip manufacturer's dominant role in the semiconductor supply chain and it could get a further boost from U.S. tariff relief.

The Taiwanese chip manufacturer said its revenue for January came to around 401.6 billion New Taiwan dollars ($12.73 billion), up 20% from the previous quarter and 37% from the same period a year earlier.

The increase was ahead of TSMC's previously issued expectation of roughly 30% revenue growth for the full year. TSMC doesn't issue commentary alongside its monthly report. However, it's a reassuring signal of intense demand as the company ramps up its investment.

TSMC recently said it would spend up to $56 billion on capital expenditures this year, increasing 30% from 2025, and executives said the Taiwanese chip manufacturer expects elevated capex for the next three years as it races to meet demand for artificial-intelligence chips.

The company could get more good news. Big U.S. technology companies are set to be exempt from coming tariffs on semiconductors, the Financial Times reported, citing unnamed sources. The carve-out is tied to TSMC's pledge to invest a total of $165 billion in U.S. manufacturing, allowing the company to allocate exemptions to its American customers, according to the FT.

TSMC is the main supplier of chips to Nvidia, the leader in semiconductors used for AI applications. The Taiwanese company also makes the core processors inside Apple iPhones, Qualcomm mobile chipsets, and processors made by Advanced Micro Devices.

American depositary receipts of TSMC are up 17% this year so far.

Write to Adam Clark at adam.clark@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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February 10, 2026 03:19 ET (08:19 GMT)

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