Overview
- Full-year 2025 revenue reached $122 billion, up 36% year over year, with fourth-quarter sales rising 26% in U.S. dollars.
- Gross margin expanded to 62.3% in Q4 2025 with guidance of 63% to 64% for Q1 2026, and operating margin reached 54%.
- Capital expenditures rose to $41 billion in 2025 and are planned at roughly $54 billion for 2026, with 70% to 80% directed to advanced processes.
- High-performance computing, including AI, accounted for 58% of 2025 revenue and grew 48% year over year, with AI revenue expected by management to compound in the mid- to high-50% range through 2029.
- TSMC remains the leading foundry serving top chip designers, carries a market value above $1.7 trillion, and trades at about 24 times forward earnings per recent coverage.