Honestly, if you’ve been watching the semiconductor space lately, you know it’s been a wild ride. Everyone is talking about chips, but Taiwan Semiconductor Manufacturing Company (TSM) is the one actually baking the bread.
As of the market close on January 16, 2026, the tsm stock price today per share sits at $342.40. That’s a small climb from the previous day, but the real story is the massive 7% surge we saw just earlier this week. We’re currently hovering near all-time highs, just a stone's throw away from the 52-week peak of $351.33.
It’s been a crazy week.
The Q4 Earnings Bombshell
A few days ago, on January 15, TSMC dropped their Q4 2025 earnings report. To put it bluntly: they crushed it. They reported a net income of NT$505.74 billion. In regular person terms, that’s about **$16.01 billion USD**.
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That is a 35% jump compared to last year.
The earnings per share (EPS) for the ADR units came in at $3.14, which was way ahead of what the suits on Wall Street were expecting. Usually, analysts are pretty good at guessing these things, but TSMC’s growth in high-performance computing (HPC) and AI is moving faster than the spreadsheets can keep up with.
Where the Money is Coming From
If you want to know why the tsm stock price today per share is staying so high, you have to look at the "nanometers." Basically, the smaller the number, the more advanced (and expensive) the chip.
- 3nm chips now make up 28% of their revenue.
- 5nm chips are the workhorses, grabbing 35%.
- 7nm chips fill in the rest at 14%.
When you add it all up, 77% of their money comes from the most advanced tech on the planet. This isn't just a business; it’s a monopoly on the future.
Why 2026 is Looking Even Bigger
A lot of people were worried that the AI hype might cool down this year. It hasn't. In fact, TSMC is planning to spend between $52 billion and $56 billion on capital expenditures (CapEx) in 2026 alone.
Think about that. They are spending more on new factories and equipment than the GDP of some countries.
Wendell Huang, the CFO, basically said they aren't slowing down because the demand for AI accelerators is "insatiable." They even raised their long-term revenue growth projections. Instead of the old 20% growth target, they’re now eyeing a compound annual growth rate (CAGR) of 25% through 2029.
The Analyst Outlook: Is $400 Next?
Following the earnings beat, the price targets are moving up. Fast.
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- Needham bumped their target to $410.
- TD Cowen moved theirs to $370.
- Morgan Stanley is even more bullish, suggesting 2026 will be the "golden year" for margins.
Of course, it’s not all sunshine. There are always "kinda" scary things to watch. The company mentioned that expanding overseas—like the new plants in Arizona—will probably eat into their gross margins by 2% to 4%. Building chips in the U.S. is just more expensive than doing it in Taiwan. Plus, geopolitical tensions are always the elephant in the room.
What You Should Actually Do
If you’re looking at the tsm stock price today per share and wondering if you missed the boat, you have to look at the valuation. Right now, the P/E ratio is around 32.6. For a company growing earnings at 35% with a virtual monopoly, that’s actually not as "expensive" as it sounds compared to some software AI plays.
Actionable Insights for Investors:
- Watch the $351 Resistance: If the stock breaks its 52-week high of $351.33, it could trigger a new technical "breakout" toward that $400 mark analysts are dreaming of.
- Monitor the Capex: The $54 billion average spending plan is a massive bet. If AI demand dips even slightly, that’s a lot of expensive machinery sitting idle. Keep an eye on Nvidia and AMD's quarterly reports; they are TSMC’s biggest customers.
- Dividend Reinvestment: The current yield is about 0.90%. It’s not a "dividend play" in the traditional sense, but the payout is growing. If you're a long-term holder, turning on DRIP (Dividend Reinvestment Plan) is a smart move given the growth trajectory.
TSMC isn't just a stock; it’s the physical infrastructure of the internet and AI. As long as we want smarter phones and faster AI, this share price has a very high floor.
Next Steps:
Check your portfolio allocation for "Single Stock Risk." Since TSM is a major component of most tech ETFs (like SOXX or VGT), you might already own more of it than you realize. If you're looking to buy in today, consider a dollar-cost averaging approach over the next three months to smooth out the volatility that usually follows a big earnings run.