NVIDIA’s go-to chip supplier, TSMC, has reported blockbuster end-of-year results, with Q4 2025 revenue jumping more than 20% year‑on‑year, beating market expectations as demand surges amid relentless AI expansion.

The Taiwan-based firm, which also counts giants like Apple, Intel, Amazon, and Qualcomm among its customers, hit $33.1 billion (£24.6bn) in revenue over the last three months of the year, according to Reuters calculations based on figures released by the company.

Monthly figures published by the chipmaker show net revenue rising every month compared with the same period in 2024, a strong showing which directly follows TSMC beginning high-volume production at its $165 billion US semiconductor manufacturing site late last year.  

While TSMC is set to report its full fourth-quarter earnings on January 15, the revenue snapshot is proof that, despite growing talk that the AI bubble might soon pop, manufacturers are still cashing in.

Another example of this trickle‑down boost for AI‑focused manufacturers is Foxconn, the Taiwanese electronics firm that produces servers, computers, and components for everything from iPhones to Kindles and Xboxes.

Publishing its own Q4 data last week, Foxconn revealed a more than 22% jump in revenue compared to the same period in 2024, raking in $82.73 billion (£61.7bn), with revenues growing both quarter-on-quarter and year-on-year, much like TSCM.

Likewise, US chipmaker AMD has projected its fourth-quarter revenue will reach around $9.6 billion (£7.1bn), which, though significantly lower than its Asian competitors, still represents a year-over-year increase of approximately 25%, growth built on the back of AI investments from the likes of OpenAI and Oracle over 2025.

With the companies laying AI’s groundwork proving more profitable than ever, fears that 2026 may see a contraction of the industry are being called into question.

Recommended reading

• Oracle Shares Drop 10% – Is the AI Bubble Bursting?
• Comment | What To Expect if the AI Bubble Bursts
• Bank of England Warns of “Sharp Market Correction” As AI Bubble Ready to Burst

A recent survey from the Motley Fool found that 9 in ten AI investors plan to maintain or increase their AI stock holdings in 2026, with just 10% planning to reduce their exposure over the next year, a confidence driven by the sky-high and still rising valuations of AI firms like Anthropic and even the much-maligned xAI.

“As reasoning models become more powerful, the companies that benefit from AI-driven optimisation will produce superior returns on capital, and the businesses that support this infrastructure will thrive from sustained demand,” said Asit Sharma, senior investment analyst for the Motley Fool.

“Of course, we’ll see peaks and troughs in AI earnings cycles, but the long-term potential of this market is still superior to almost any other current investment theme we can name.”