TSMC Reports Strong January Revenue Growth

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is among the most profitable mega cap stocks to buy. On February 9, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported consolidated net revenue of NT$401.26 billion for January 2026, up 19.8% from December 2025 and 36.8% from January 2025. Additionally, the board of directors approved a cash dividend of NT$6.0 per share for Q4 2025.

Earlier on February 5, Reuters reported that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is planning mass production of advanced 3-nanometre chips in Kumamoto, southern Japan. This announcement places Japan at the forefront of the production of top-notch 3-nanometre chips, which are utilized in both HPC and AI servers. These chips are set to be manufactured at the company’s second fab in Arizona next year. This acceleration in AI will help the company outperform its peers.

As stated by CEO C.C. Wei in Tokyo at a meeting with Japan’s Prime Minister Sanae Takaichi,

“We believe this fab will further contribute to the local economic growth and, most importantly, form a foundation for Japan’s AI business.”

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), founded in 1987, is a global foundry for integrated circuits and other semiconductor devices. The core offerings of this Taiwanese company include wafer fabrication processes, mask manufacturing, and engineering support services, among others.

While we acknowledge the potential of TSM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.