Taiwan Semiconductor Manufacturing Co reports $22.36 billion net profit, raises 2026 capex outlook to $60-$64 billion amid AI-driven growth.
Taiwan Semiconductor Manufacturing Co (TSM) reported a 77% year-over-year increase in second-quarter net profit to $22.36 billion, surpassing analyst estimates of $19.74 billion. Revenue rose 33.7% to $40.2 billion, driven by strong demand for AI processors, with gross margin hitting 67.7%, above the 67.1% consensus.
The company raised its 2026 capital expenditure forecast to $60 billion-$64 billion from $52 billion-$56 billion, citing higher long-term investment needs. TSMC guided third-quarter revenue between $44.6 billion and $45.8 billion, above the $43.11 billion estimate, with gross margin expected at 65%-67%.
Shares declined 2% in early trading following the capex announcement. High-performance computing accounted for 66% of revenue, while advanced nodes (7nm and below) made up 77% of wafer revenue.