Analysts cite 25% revenue CAGR through 2029 and strong AI-driven demand as catalysts for TSMC’s growth.
Taiwan Semiconductor Manufacturing (TSM) reported Q2 2026 revenue of $40.20 billion, up 36% year over year, with net income surging 77.4%. Gross margin reached 67.7%, though management guided Q3 2026 margins to 65%-67% due to 2nm node ramp costs.
Shares have climbed 40.43% year to date, outperforming the S&P 500’s 9.73% gain, but pulled back 8.12% over the past month amid sector rotation and insider selling. The stock trades at a forward P/E of 25 and a PEG near 1, historically low for a company targeting 25% revenue growth through 2029.
Analysts project 18.6% annualized gains to reach $1,000 per share by 2031, contingent on 2nm and A13 node execution and sustained AI hyperscaler capex.