Taiwan Semiconductor Manufacturing (NYSE:TSM) Issues Earnings Results

Taiwan Semiconductor Manufacturing (NYSE:TSM) released its quarterly earnings results on Thursday. The semiconductor company reported $4.31 earnings per share for the quarter, topping the consensus estimate of $3.82 by $0.49, Zacks reports. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. The business had revenue of $39.89 billion for the quarter, compared to the consensus estimate of $39.83 billion. During the same period last year, the firm earned $2.47 earnings per share. The company’s quarterly revenue was up 33.7% on a year-over-year basis.

Here are the key takeaways from Taiwan Semiconductor Manufacturing’s conference call:

• TSMC reported Q2 revenue of $40.2 billion at the high end of guidance, with gross margin of 67.7% and strong demand driven by leading-edge process technologies.
• The company raised its full-year 2026 revenue growth outlook to slightly above 40% in U.S. dollar terms, citing exceptionally strong AI-related demand and broad customer support.
• TSMC increased its 2026 capital budget to $60 billion-$64 billion and announced an additional $100 billion investment in Arizona to expand 2nm-and-below logic and advanced packaging capacity.
• Management said the 2nm ramp will pressure margins by roughly 3-4 percentage points in the second half, and Q3 gross margin is expected to ease to about 66% at the midpoint due to this mix shift and overseas fab dilution.
• Executives emphasized that AI demand remains extremely robust, including emerging agentic AI use cases, and said they expect this trend to support strong multi-year growth across CPUs, GPUs, and other leading-edge chips.

Taiwan Semiconductor Manufacturing Stock Down 4.1%

Shares of NYSE TSM opened at $392.84 on Friday. Taiwan Semiconductor Manufacturing has a 12-month low of $223.70 and a 12-month high of $479.00. The stock’s fifty day simple moving average is $427.06 and its two-hundred day simple moving average is $377.80. The stock has a market capitalization of $2.04 trillion, a PE ratio of 32.54, a price-to-earnings-growth ratio of 1.04 and a beta of 1.36. The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be issued a dividend of $1.1136 per share. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. This represents a $4.45 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Wednesday, September 16th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 24.71%.

Key Stories Impacting Taiwan Semiconductor Manufacturing

Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:

• Positive Sentiment: TSMC reported record Q2 results, with profit jumping about 77% and revenue rising roughly 33.7% year over year, both beating expectations. The company also said AI demand remains very strong, supporting its outlook for continued growth.
• Positive Sentiment: TSMC raised its 2026 revenue growth outlook and increased capital spending plans, signaling confidence that AI-related demand will stay robust and that it is expanding capacity to meet customer needs.
• Positive Sentiment: The company announced an additional $100 billion investment in Arizona, expanding its U.S. manufacturing footprint and reinforcing long-term demand for advanced chips.
• Neutral Sentiment: Several analysts and market commentators said the earnings report confirmed the AI buildout is still intact, with TSMC seen as a key supplier to Nvidia and other major AI customers.
• Negative Sentiment: Despite strong fundamentals, TSMC shares are under pressure because investors are worried about heavier capex, margin dilution, and weaker free cash flow from the large U.S. expansion plan.
• Negative Sentiment: A broad selloff in semiconductor and AI-related stocks across the U.S., Asia, and Europe has weighed on sentiment, as traders question how long the AI spending boom can last.
• Negative Sentiment: Global risk-off sentiment has also been amplified by tech weakness and rising Middle East tensions, adding to selling pressure on chip stocks including TSMC.

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Bor-Zen Tien bought 1,000 shares of the business’s stock in a transaction on Monday, June 29th. The shares were bought at an average price of $76.64 per share, for a total transaction of $76,640.00. Following the completion of the purchase, the vice president directly owned 12,051 shares of the company’s stock, valued at approximately $923,588.64. This trade represents a 9.05% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Tzu-Sou Chuang sold 200,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the completion of the transaction, the vice president directly owned 2,495,165 shares in the company, valued at approximately $174,237,371.95. The trade was a 7.42% decrease in their position. The SEC filing for this sale provides additional information. Insiders have purchased a total of 6,857 shares of company stock valued at $512,334 over the last quarter. 1.11% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Quattro Advisors LLC purchased a new stake in Taiwan Semiconductor Manufacturing during the 4th quarter valued at about $25,000. Resources Management Corp CT ADV purchased a new stake in Taiwan Semiconductor Manufacturing in the second quarter valued at $32,000. Riggs Asset Managment Co. Inc. purchased a new position in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter valued at about $41,000. SWAN Capital LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 65.7% in the 4th quarter. SWAN Capital LLC now owns 227 shares of the semiconductor company’s stock valued at $69,000 after buying an additional 90 shares during the period. Finally, Triumph Capital Management acquired a new stake in Taiwan Semiconductor Manufacturing during the third quarter valued at $70,000. 16.51% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Barclays boosted their price target on Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an “overweight” rating in a report on Friday. Needham & Company LLC upped their price target on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a research report on Thursday, April 16th. Weiss Ratings downgraded shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday. DA Davidson reiterated a “buy” rating and issued a $450.00 price target on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, April 17th. Finally, Susquehanna boosted their price target on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a report on Thursday. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing currently has an average rating of “Moderate Buy” and a consensus target price of $475.00.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC’s service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.