Shares of Taiwan Semiconductor Manufacturing Company (TSM) slid 4.45% on Jan. 20, erasing most of last week’s post-earnings gains amid a broader market slump.
The company is the world’s largest chip foundry and a critical manufacturer for Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO). Its earnings and outlook typically offer an early signal on demand trends across the AI and data center supply chain.
TSMC was one of the first tech companies to wrap up Q4 and full-year 2025 earnings amid the earnings season.
On Jan. 15, the company reported diluted earnings per ADR of $3.14 for the fourth quarter, up 35% from a year earlier. Revenue for the quarter reached $33.73 billion, up 25.5% year-over-year.
Gross margin, a key profitability measure, was 62.3%, up from the 59.5% a year ago.
“Moving into first quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies, ” said Wendell Huang, Chief Financial Officer of TSMC.
TSMC ADRs, which are traded here in the U.S., are up roughly 9.2% year-to-date, while the S&P 500 is down 0.7% over the same period.
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Analysts raise TSMC stock price target
TD Cowen raised its price target on TSMC to $370 from $325 and maintained a hold rating, according to Thefly.
The firm cited stronger-than-expected quarterly results driven by manufacturing execution. It now expects TSMC to deliver roughly 30% year-over-year growth in 2026.
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Barclays also raised its price target on TSMC to $450 from $380 and maintained an overweight rating, Thefly reported.
Barclays said TSMC’s Q4 results were “strong across the board,” the analyst told investors in a research note.
Cathie Wood, CEO of Ark Invest, bought 5,542 shares of TSMC valued at roughly $1.9 million on Jan. 16 following the earnings.
Veteran trader says do not chase TSMC stock at recent highs
Two weeks before earnings, Stephen Guilfoyle, a 30-year Wall Street veteran who runs family trading operation Sarge986 LLC, views TSMC’s margins as the key catalyst.
“I think the story will be in the margins achieved,” Guilfoyle said in a note published on TheStreet Pro.
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Guilfoyle also highlighted a bullish technical setup before the earnings report. “I see an inverted head and shoulders pattern with a $314 pivot,” he wrote, adding that momentum indicators and moving averages were aligning in favor of the stock.
TSMC ADRs were trading near $315 when Guilfoyle took a long position two weeks ago. The shares now trade at around $342.
Now, Guilfoyle reiterates a target price of $377 for Taiwan Semiconductor, but he warned against chasing the stock after the recent run.
“Allow for some profit taking,” he said, adding that a loss of the 50-day simple moving average would be a key risk signal.
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