Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) reported a second-quarter 2026 revenue of $40.2 billion, a 33.7% increase year-over-year, and earnings per share (EPS) rose by 74.5%, exceeding analysts’ expectations. Despite a recent decline in stock price, TSM’s high-performance computing segment accounted for 66% of total revenues, growing 20% sequentially, driven by strong demand for AI and data center applications.
TSM’s projected revenues for the third quarter of 2026 are expected to range between $44.6 billion and $45.8 billion, indicating approximately 12% sequential growth and 37% year-over-year growth. The company also announced a total investment plan of $265 billion for its Arizona fabrication plants, emphasizing a commitment to increasing production capacity for advanced semiconductor processes, including 2-nanometer technology.
Year-to-date, TSM’s stock has increased over 30%, yet analysts project a potential upside of 17.4% based on current price targets, suggesting a maximum upside of 50.6%. Estimates point to a revenue growth of over 40% for the year, alongside an expected long-term EPS growth rate of 26.5%.
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