Russ Mould, investment director at AJ Bell, said: “After last week’s revenue update it was an open secret that TSMC would be reporting a record quarter but the details are still striking.
“Not least the levels of capital expenditure TSMC is committing to, suggesting it is fully confident the AI boom has legs.
“This is underlined by the company’s guidance for 30 per cent growth in 2026.
“TSMC’s dominance of the chip manufacturing space has enabled it to capitalise on the huge expansion in AI spending in recent years.
“This has compensated for the easing revenue associated with chips used in consumer electronics.
“Beyond a broad-based slowdown in the AI space, the main risk looming over TSMC relates to its position in a geopolitical hotspot at a time when the world has become uncertain.
“However, given TSMC has no rivals with anywhere near its scale and level of expertise, it is difficult for customers to diversify their supply chain even if they wanted to.”
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