Cathie Wood Bets Big on TSMC — Loads Up Millions After Strong Q4 Earnings

This article first appeared on GuruFocus.

Cathie Wood, founder of Ark Investment, purchased 5,500 shares of Taiwan Semiconductor Manufacturing Company (NYSE:TSM), worth about $1.89 million.

The move comes after TSMC reported a strong fourth quarter, posting net income of NT$505.74 billion ($16 billion), up 35% from a year earlier. Diluted earnings reached NT$19.50 per share, or $3.14 per ADR, while revenue rose 25.5% to NT$1.046 trillion ($33.73 billion).

Wood’s investment signals growing confidence in TSMC’s long-term role as a supplier of advanced AI and high-performance chips. The company counts major clients such as Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA) and has seen rising demand for its latest technology nodes.

Analysts are broadly positive. Morgan Stanley and BofA Securities raised price targets, citing solid earnings, margin expansion, and long-term growth in AI and cloud computing. TD Cowen also highlighted TSMC’s strong execution and expansion plans, noting capital spending could boost future production capacity.

Wood’s purchase underscores continued investor interest in TSMC as a key player in the AI chip market.