TSMC Stocks Skyrocket Amid Record Sales and Tariff Exemption

TSMC stock continues its sharp rally after reporting a 37% growth in January sales to NT$401.6 billion ($12.73 billion). This leap is significantly higher than the company's full-year growth outlook of 30%. The Taiwanese chip manufacturer has seen surging demand for advanced chips from top customers, including Nvidia and Apple.

As a result, TSMC stock has gained 12% in the last four sessions to hit a fresh record. Retail investors are now considering cashing out at what they believe are optimum levels. However, on Stocktwits, retail sentiment has soured with some users calling it a 'bull trap' and others shorting shares.

TSMC's plans to spend up to $56 billion on capital expenditures this year, increasing 30% from 2025, for capacity expansion are also seen as a key catalyst. The company is investing heavily in the US, with plans to allocate exemptions to its American customers under an upcoming tariff carve-out.

The exemption is tied to TSMC's pledge to invest a total of $165 billion in US manufacturing. This development has added to the stock's momentum, which is set to continue as the company's business gains remain steady.