GuruFocus·18h ago
TSMC Gains as Packaging Moves Closer to Its SuppliersTaiwan Semiconductor Manufacturing (TSM), the world's largest contract chipmaker, anchored a new Kaohsiung industrial park designed to tighten the link between
TSM's fundamental outlook is exceptionally strong, driven by accelerating AI demand that has propelled revenue growth to 36% year-over-year in 2026Q2 and expanded gross margins to 67.7%. The company's pricing power and operating leverage are evident in operati...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue surged 36% year-over-year to $1.3T in 2026Q2, with gross margin expanding to 67.7% and operating margin reaching 60.3%, reflecting strong pricing power and operating leverage.
TSMC is a critical manufacturer for AI chip designers like Nvidia and AMD, with demand expected to fuel significant revenue growth.
TSMC reported over 35% year-over-year revenue growth and a gross margin of 66.2%, prompting an upward revision of full-year 2026 revenue growth guidance to above 30%.
Management projects AI accelerator revenue to grow at a mid- to high-50s CAGR through 2029.
Tensions surrounding Taiwan could lead to supply chain disruptions or operational impacts for TSMC.
Building fabs overseas, especially in Arizona, may dilute margins and increase costs due to chemical and gas pricing pressures.
Despite strong Q1 margins, there are concerns about future margin compression.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 16, 2026 | $4.31+11.4% vs $3.87 | $39.4B-1.2% vs $39.8B |
Q2 2026 Apr 16, 2026 | $3.49+5.4% vs $3.31 | $36.0B+1.8% vs $35.4B |
Q2 2026 Apr 15, 2026 | $3.49+5.4% vs $3.31 | $36.0B+1.8% vs $35.4B |
Q1 2026 Jan 15, 2026 | $3.09+6.6% vs $2.90 | $33.1B+0.4% vs $33.0B |
Taiwan Semiconductor Manufacturing (TSM), the world's largest contract chipmaker, anchored a new Kaohsiung industrial park designed to tighten the link between
TSMC (TSM) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
TSMC's advanced-packaging industrial park signals a surge in chip manufacturing complexity, and the companies that profit most will not be the ones building the packages. Three equipment suppliers sit at a critical chokepoint where every additional package produced forces a spending decision manufacturers cannot easily avoid.
Shares of Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) are rising Monday morning after a supply-chain report indicated AMD has notified partners of a 10% price increase planned for the fourth quarter, tied to higher wafer costs at its
Benchmark TSM against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Taiwan Semiconductor Manufacturing Company Limited (TSM)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $452.00 | $2.34T | 43.03 | 32.97% | 45.1% | 35.88% | 0.63% | |
| $123.86 | $624.75B | -2102.89 | -0.47% | -19.79% | -9.58% | — | |
| $47.95 | $26.31B | 30.16 | 0.61% | 10.32% | 6.05% | — | |
| $25.77 | $64.28B | 48.92 | 2.26% | 33.29% | 20.98% | — | |
| $472.46 | $375.11B | 54.56 | 4.39% | 30.05% | 40.44% | — | |
| $310.96 | $388.88B | 53.99 | 26.02% | 31.27% | 66.97% | — |
Taiwan Semiconductor Manufacturing Company Limited (TSM) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Taiwan Semiconductor Manufacturing Company Limited (TSM) stock FAQ — growth, dividends, profitability & financials explained
Taiwan Semiconductor Manufacturing Company Limited (TSM) reported $4.45T in revenue for fiscal year 2025. This represents a 10002% increase from $44.05B in 1997.
Taiwan Semiconductor Manufacturing Company Limited (TSM) grew revenue by 33.0% over the past year. This is strong growth.
Yes, Taiwan Semiconductor Manufacturing Company Limited (TSM) is profitable, generating $2.24T in net income for fiscal year 2025 (45.1% net margin).
Yes, Taiwan Semiconductor Manufacturing Company Limited (TSM) pays a dividend with a yield of 0.63%. This makes it attractive for income-focused investors.
Taiwan Semiconductor Manufacturing Company Limited (TSM) has a return on equity (ROE) of 35.9%. This is excellent, indicating efficient use of shareholder capital.
Taiwan Semiconductor Manufacturing Company Limited (TSM) generated $1.19T in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
