Taiwan Semiconductor Manufacturing (TSM) Stock Price, News, Analysis

Technical Score (1D)

NEUTRAL

News Sentiment

BULLISH

TSMC’s Q2 report showed a 36 % YoY sales jump, with June revenue up 67.9 % and surpassing consensus, driven by AI demand and sold‑out N3 nodes. This surge reinforces the company’s leadership in advanced AI chip manufacturing and signals that demand for 5 nm and 3 nm nodes remains strong. The firm also announced two new advanced‑packaging plants in Chiayi, one at full commercial scale and a second nearing full production, projected to add over NT$300 billion in annual output and support Nvidia and other AI customers. The expansion should boost utilization and margin, as reflected in a 53 % gross margin that improved from 51 % in the prior quarter. Revenue exceeding the upper end of the $39–$40.2 billion guidance range underscores robust demand across AI, automotive, and high‑performance computing, potentially justifying a higher valuation. The earnings calendar places TSMC’s full Q2 release on Thursday, amid inflation data and Fed testimony that could influence interest‑rate expectations and, in turn, semiconductor demand. Analysts note that TSMC’s advanced node advantage keeps it ahead of competitors such as Intel, whose 14 nm and 10 nm lines face yield challenges, a factor that could sustain upside relative to peers. TSMC’s guidance for Q3 revenue of $18.5 billion, slightly above consensus, signals continued momentum, but investors should watch the actual Q3 results for confirmation. Key watch items include the ramp‑up timeline and utilization rates of the Chiayi packaging plants, any revisions to the 2026 revenue growth target, and the impact of macro inflation data and Fed testimony on discretionary spending for AI and automotive chips.

TSM|Company Info

Sector

Technology

Industry

Semiconductors

Exchange

NYQ

Country

Taiwan

Website

tsmc.com

Symbol

TSM

Description

Taiwan Semiconductor Manufacturing Company (TSMC) is a global leader in the semiconductor industry, specializing in the manufacturing of integrated circuits and other semiconductor devices. TSMC's core business revolves around providing advanced wafer fabrication processes, including those used in the production of CMOS logic and mixed-signal chips. These sophisticated processes enable the company to serve a diverse range of end markets, with products ultimately powering high-performance computing, smartphones, and automotive electronics. With its headquarters in Taiwan, TSMC also offers customer support and engineering services, alongside investments in technology start-ups and the manufacturing of color filters. Established in 1987, the company has established itself as a key player in the global technology supply chain.

TSM|Earnings Snapshot

Earnings Summary

Taiwan Semiconductor Manufacturing Company (TSMC) is a global leader in semiconductor manufacturing, specializing in advanced wafer fabrication processes that power high‑performance computing, smartphones, and automotive electronics. The company’s core business revolves around providing cutting‑edge CMOS logic and mixed‑signal chips, supported by customer engineering services and strategic investments in technology start‑ups. In the most recent reporting cycle, TSMC’s Q4 2025 earnings delivered an EPS of $3.14 versus an estimate of $2.97556, a clear beat, while revenue of $1.04609 trillion exceeded prior quarter levels, reflecting continued demand for its 3 nm, 2 nm, 5 nm, and 7 nm nodes; the preceding quarter, Q2 2025, posted an EPS of $2.47 against an estimate of $2.31303, another beat, and revenue of $933.792 billion, indicating a steady acceleration in top‑line growth. Historically, TSMC has maintained a consistent upward trajectory, with EPS rising from $2.24 in Q4 2024 to $3.14 in Q4 2025 and revenue climbing from $868.461 billion to $1.04609 trillion over the same period, while the company has repeatedly beat analyst expectations in every quarter reported, underscoring its robust pricing power and strong demand for AI‑driven chips. Recent news highlights Citi’s lift of TSMC’s 2026 revenue outlook and price target to NT$3,800, citing a strong AI semiconductor demand that should support higher wafer pricing; the upgrade comes just hours before the Q2 2026 earnings announcement, positioning the market to anticipate a potential upside in guidance. Analysts expect wafer price hikes of 5–10 % across multiple nodes, which could lift revenue and margins but may also tighten supply‑chain constraints. Investors should watch the company’s wafer pricing plans, capacity utilization, and guidance on future AI demand, as these factors will determine whether the AI‑driven growth narrative sustains and the price target upgrade remains justified.

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EPS

EstBeatMiss

Qtr	Est	Actual	+/−
Q2'26	$3.89	-	-
Q4'25	$2.98	$3.14	+5.5%
Q3'25	$2.63	$2.92	+11.2%
Q2'25	$2.31	$2.47	+6.8%
Q1'25	$2.05	$2.12	+3.2%
Q4'24	$2.22	$2.24	+0.7%

Revenue

EstBeatMiss

Qtr	Est	Actual	+/−
Q2'26	$1278.6B	-	-
Q4'25	-	$1046.1B	-
Q3'25	-	$989.9B	-
Q2'25	-	$933.8B	-
Q1'25	-	$839.3B	-
Q4'24	-	$868.5B	-

Full Earnings BreakdownEstimates, actuals, guidance, and historical context

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Market Data

TSM Stock Snapshot

TSM is currently trading at $423.05, giving Taiwan Semiconductor Manufacturing a market cap of 62626.67B and a P/E ratio of 32.5. Today's range spans $419.37–$433.10, with shares opening at $430.87 and moving up $1.47 (0.3%) from the prior close. DailyIQ's technical score sits at 50/100 (HOLD) with a news sentiment reading of 89/100.

Over the past year TSM has traded between $1065.00 and $2535.00 - the current price is -60.3% off the 52-week low and -83.3% from the high. 45 analysts cover the stock with a Buy consensus and a mean 12-month target of $498.24 (range $354.00–$700.00), implying upside of +17.8%.

The technical picture for TSM is flat: 50/100, HOLD, price $423.05 (near 52-week lows). Sentiment runs bullish (89/100). That's not a warning sign for a mega-cap in Technology with 62626.67B in capitalization - it's a description of a stock where the next move is waiting for a trigger rather than already in motion. (P/E: 32.5) The 52-week span from $1065.00 to $2535.00 provides the context; the HOLD signal says neither buyers nor sellers have a strong enough conviction to push it beyond the midpoints.

Passive mandates provide a structural support floor for TSM that active managers can rely on during consolidation phases — at 62626.67B in Technology capitalization, the index-driven bid doesn't go away when the technical signal softens to HOLD (50/100). Sentiment at 89/100 (bullish) and price at $423.05 (near 52-week lows) describe a waiting pattern, not a deteriorating one, within the $1065.00–$2535.00 range.

News Sentiment Analysis

Sentiment gathered from recent headlines

89/100

Strong NegativeNeutralStrong Positive

BULLISH

Recent News Coverage

Most recent articles, ranked by recency (click to expand).

10+ articles

What did this article say?

TSM reported record Q2 revenue driven by AI chip demand, underscoring its dominant position in the AI infrastructure market. The surge reflects strong corporate spending on GPU servers, networking, and data centers, while legacy IT budgets shrink. TSM’s growth is expected to continue as AI adoption expands, but capital rebalancing toward software may temper demand in the longer term. Investors should monitor TSM’s guidance for Q3 and the pace of AI-related capital expenditures across major tech firms.

What did this article say?

TSMC reported a significant revenue increase in June, breaking a four‑year seasonal pattern. The jump reflects stronger demand for its chips, particularly in AI and automotive markets. The result may lift the company’s quarterly guidance and influence margin expectations for the remainder of the year.

What did this article say?

TSMC’s Q2 revenues reached $39.6 billion, close to the high end of its guidance, driven by robust AI infrastructure demand. The performance supports the company’s trajectory toward a $500 valuation target. Continued AI chip orders and margin expansion will be key to sustaining this growth.

What did this article say?

TSMC reported a 36% jump in quarterly sales, with June revenue up 67.9% year‑over‑year, driven by AI demand and sold‑out N3 nodes. Three new Chiayi advanced‑packaging facilities are projected to add over NT$300 billion in annual output, underscoring supply constraints in the AI chip market. While memory peers such as SK Hynix fell 13%, TSMC shares rose nearly 2%, reflecting its strong positioning amid a sector shift.

What did this article say?

Taiwan Semiconductor Manufacturing posted Q2 revenue of $39.63 billion, up 36% YoY, surpassing the $39.31 billion consensus. The figure sits near the upper end of the company’s $39 billion to $40.2 billion guidance range. June revenue rose 67.9% YoY, reflecting strong demand for advanced AI chips. First‑half revenue reached a record $2.404 trillion, up 35.6% from the prior year.

What did this article say?

TSMC announced a 36% sales growth in Q2, driven by sustained AI demand. Revenue figures exceeded expectations, reinforcing the company’s position as the world’s largest contract chipmaker. The growth reflects the continued adoption of advanced process technology across AI, smartphones, and high‑performance computing.

What did this article say?

The earnings calendar for the week includes TSMC’s Q2 results, scheduled for Thursday, alongside key inflation data such as the CPI and PPI. The Federal Reserve Chair’s testimony may influence expectations for interest rates, which in turn can affect semiconductor demand. TSMC’s performance will be a barometer for the broader technology sector, especially as AI chip demand remains high. Investors should monitor how TSMC’s earnings compare to guidance and how macro data shapes the market.

What did this article say?

TSMC reported record revenue for June, with Q2 sales surpassing analyst guidance. The company’s advanced 5nm and 3nm nodes continued to drive strong demand from AI and automotive customers. Gross margin improved to 53%, reflecting higher utilization and cost efficiencies. The results reinforce TSMC’s leadership in the semiconductor supply chain and suggest continued upside for the next quarter.

What did this article say?

TSMC announced the launch of two new advanced packaging plants in Chiayi, Taiwan, as part of Phase II of its expansion. One plant is already at full commercial scale, while the second is nearing full production. The addition is driven by surging AI chip demand, notably from Nvidia, and will increase the park’s annual output beyond NT$300 billion. The expansion supports TSMC’s strategy to strengthen its packaging capabilities and secure a larger share of the AI semiconductor market. Investors should monitor the ramp‑up timeline and potential capacity utilization rates.

What did this article say?

The article compares TSMC and Intel as leading AI chip manufacturers, highlighting TSMC’s advanced node advantage and Intel’s manufacturing challenges. TSMC’s 5nm and 3nm processes enable higher performance and power efficiency for AI workloads, positioning it favorably against Intel’s 14nm and 10nm offerings. Intel’s recent production delays and yield issues could limit its ability to capture AI market share. Consequently, TSMC’s valuation may benefit from sustained AI demand growth.

Recent News Coverage

Most recent articles, ranked by recency (click to expand).

10+ articles

What did this article say?

TSM·Taiwan Semiconductor Manufacturing

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TSM Stock Snapshot

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News Sentiment Analysis

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