Taiwan Semiconductor Manufacturing Company updates guidance, signaling stronger profitability amid a tech sector rebound in Q2 2026.
Taiwan Semiconductor Manufacturing Company (TSM) revised its long-term gross margin outlook upward, reflecting confidence in sustained demand for advanced semiconductors. The move comes as chip stocks and data center-related equities led a 13.8% global market rally in Q2 2026, reversing earlier stagflation concerns.
The tech rebound followed easing US-Iran tensions and lower energy prices, though central banks remained cautious on growth and inflation. TSM, the world’s largest contract chipmaker, was a top contributor to Magellan Global Opportunities Fund’s performance, which rose 4.3% in the quarter but lagged its 12.5% benchmark.
Semiconductor and data center supply chains saw heightened investor interest, with valuations described as bubble-like in some segments. The portfolio’s underperformance was attributed to these frothy conditions.