Back
TSMC posts NT$1.27 trillion Q2 2026 revenue, lifts full-year growth view

TSMC posts NT$1.27 trillion Q2 2026 revenue, lifts full-year growth view

Record quarterly results and higher 2026 spending and growth guidance highlighted strong AI-chip demand, while Morgan Stanley raised its target price and cited rising cloud spending despite weak consumer demand.

Fact Check
The CNBC article 'TSMC second-quarter profit spikes over 77%, topping estimates' confirms every element of the claim: revenue NT$1.27 trillion, net profit NT$706.56 billion (rounds to NT$706.6 billion), net profit up 77.4% year-over-year, topping analyst estimates, and a fifth consecutive record quarter driven by AI infrastructure demand. All figures match precisely. While I could not obtain a second independent corroboration via search, the primary reporting source is authoritative and detailed.
    Reference: 1
Summary

Taiwan Semiconductor Manufacturing Co. reported record second-quarter 2026 revenue of NT$1.27 trillion and net income of NT$706.56 billion, beating expectations as AI-chip demand from customers including Nvidia, Apple and Broadcom drove growth. Revenue rose 36% from a year earlier, net income climbed 77.4%, and gross margin reached 67.7%. TSMC raised its 2026 capital expenditure plan to $60 billion-$64 billion from $52 billion-$56 billion and lifted its full-year revenue growth guidance to about or slightly above 40% from about or above 30%, with management citing rapidly rising cloud spending by CSPs, or cloud service providers, despite weaker consumer demand. Morgan Stanley maintained an Overweight rating and raised its target price to NT$2,988, saying TSMC's AI semiconductor business could grow at a 70%-80% compound annual rate versus the company's earlier 55%-60% forecast. Separate market coverage said TSMC's U.S.-listed shares fell 4.5% premarket even as its Taipei-listed stock closed higher.

Terms & Concepts
  • capital expenditure: Corporate spending on long-term assets such as factories and equipment; TSMC raised its 2026 capex guidance to $60 billion-$64 billion.
  • gross margin: The share of revenue remaining after production costs; TSMC reported a 67.7% gross margin in the second quarter.
  • CSPs: Cloud service providers, whose rising cloud infrastructure spending TSMC cited as a driver of stronger AI-related demand.