The Taiwan Semiconductor Manufacturing Company (TSMC) reported a second-quarter revenue of $40.20 billion, marking a 33.7% increase year-over-year and a 12.0% increase from the previous quarter. The company raised its full-year 2026 revenue growth guidance to slightly above 40%, up from the previous projection of 30%. Advanced technology chips (7-nanometer and below) constituted 77% of wafer revenue.
TSMC also announced an additional $100 billion investment in its Arizona fabrication plants, bringing its total investment for these facilities to $265 billion. Despite these positive results, TSMC shares are down approximately 3% following the earnings report, even though the stock has compounded at an annualized rate of 61.6% since the beginning of 2023.
Looking ahead, TSMC’s sales are projected to grow 32% this year and another 27% next year, with earnings expected to rise 45% this year and 27.5% next year. The company currently holds a Zacks Rank of #2 (Buy), indicating strong earnings estimate momentum.
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