TSM's revenue rose from roughly $759.7B in 2024Q3 to about $1.5T in 2026Q3, with gross margin climbing from 53.2% to 66.4% and operating margin reaching 58.6%, suggesting strong pricing power driven by AI and advanced-node demand.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue grew about 51% year over year to roughly $1.5T in 2026Q3 while gross margin expanded to 66.4% and operating margin to 58.6%, indicating strong operating leverage that may be sensitive to any slowdown in AI-driven demand.
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 11/7/2026, 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) |
|---|---|---|
Q4 2026Latest Oct 15, 2026 | $4.60+3.4% vs $4.45 | $46.1B+0.9% vs $45.7B |
Q3 2026 Jul 16, 2026 | $4.22+10.8% vs $3.81 | $40.2B+0.9% vs $39.8B |
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 |
TSMC makes chips for clients that are competitors to each other. Taiwan Semiconductor's stock is trading below its normal valuation range.
Every AI chip from Nvidia and Broadcom runs through one company's fabs, yet that company trades at a fraction of the valuation its customers command. The gap raises a question worth answering before the market closes it.
A brutal 26% monthly slide has shaken Asian chip stocks, yet one investor sees election week as a reason to hold tighter. What tax-code provision and AI demand keep him buying, and which risk does he refuse to ignore?
Two memory chip makers drive one Korea fund, and Wall Street's AI selloff just hammered both before Asia even opened. Why did one ETF fall twice as hard as its Japan rival, and what would prove the panic is over?
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 |
|---|---|---|---|---|---|---|---|
| $375.44 | $1.95T | 36.93 | 32.97% | 45.1% | 35.88% | 0.74% | |
| $56.28 | $283.88B | -955.52 | -0.47% | -20.09% | -9.9% | — | |
| $38.62 | $21.19B | 24.29 | 0.61% | 10.32% | 6.05% | — | |
| $13.85 | $34.55B | 27.17 | 2.26% | 31.93% | 19.95% | 3.18% | |
| $332.72 | $264.16B | 38.42 | 4.39% | 30.05% | 40.44% | 0.51% | |
| $200.44 | $250.66B | 34.80 | 26.02% | 32.34% | 71.75% | 0.5% |
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 $4.95T in revenue over the trailing twelve months. Revenue was $3.85T in fiscal year 2025. That is 8636% more than the $44.05B of fiscal year 1997.
Taiwan Semiconductor Manufacturing Company Limited (TSM) grew revenue by 33.0% in fiscal year 2025, compared with the prior fiscal year.
Yes. Taiwan Semiconductor Manufacturing Company Limited (TSM) earned $2.55T in net income over the trailing twelve months (a 51.5% net margin).
Yes. Taiwan Semiconductor Manufacturing Company Limited (TSM) pays a dividend that yields 0.74% at the current price, a small yield.
Taiwan Semiconductor Manufacturing Company Limited (TSM) had a return on equity (ROE) of 35.9% in fiscal year 2025. That is well above the market's typical 10-15%.
Taiwan Semiconductor Manufacturing Company Limited (TSM) generated $1.56T in free cash flow over the trailing twelve months.
