TLDR
- TSMC reported July revenue of NT$467.58 billion ($14.5 billion), up 44.7% year-over-year
- First seven months of 2026 revenue reached NT$2.87 trillion, up 37% from the same period last year
- Q2 net profit jumped 77% year-over-year to $22 billion, beating Wall Street expectations
- Needham analyst raised price target to $530, maintaining a Buy rating
- TSM stock is up 38.8% year-to-date; average analyst price target implies ~25% upside
TSMC posted record July revenue of NT$467.58 billion ($14.5 billion), a 44.7% jump from the same month last year and a 5.6% rise from June. The numbers landed on August 10, 2026, and confirm that demand for advanced chips is still running hot.
Taiwan Semiconductor Manufacturing Company Limited, TSM
For the first seven months of 2026, TSMC’s total revenue hit NT$2.87 trillion, up 37% from the same period in 2025. That kind of consistency is hard to argue with.
The July figures follow an already strong Q2. TSMC generated $40.2 billion in second-quarter revenue, up from $30.07 billion a year earlier. Net profit came in at NT$706.6 billion ($22 billion), a 77% year-over-year increase that cleared analyst estimates with room to spare.
TSMC makes chips for some of the biggest names in tech, including Nvidia and Apple. Its advanced manufacturing and packaging capabilities have put it at the center of AI infrastructure spending.
Q3 Guidance and Analyst Targets
For Q3 2026, management guided revenue of $44.6 billion to $45.8 billion, with gross margins expected between 65% and 67%. That’s a step up from Q2 and signals continued momentum through the back half of the year.
Needham analyst Charles Shi raised his price target on TSM to $530 from $480 following the Q2 report, keeping a Buy rating. Shi projects TSMC’s revenue to grow 40% in 2027 and 24% in 2028, driven by AI chip demand. He also models capital expenditure of around $80 billion and $90 billion in those years as the company builds out capacity.
At the start of 2026, TSMC projected full-year revenue growth of close to 30% in U.S. dollar terms. At this rate, the company looks set to beat that target.
Valuation Picture
TSM is currently trading at $420.04. According to GuruFocus, the stock’s GF Value stands at $352.04, putting it roughly 19.3% above what the model considers fair value. The stock’s P/E ratio sits at 27.47x, above its five-year median of 22.78x.
The GF Score is 98 out of 100, with perfect 10/10 marks for profitability and growth. Momentum and financial strength both score 9/10. Valuation scores lower at 6/10.
Insider activity over the last three months shows net selling of $12.4 million, with $14 million in sales against $1.6 million in purchases.
Among institutional investors tracked by GuruFocus, 45 gurus hold the stock. Thirteen added to positions recently, while 27 trimmed. The split reflects a cautious tone at current price levels.
On TipRanks, TSM carries a Strong Buy consensus based on six Buy ratings and one Hold. The average price target of $525 suggests nearly 25% upside from current trading levels.
TSM shares are up 38.8% year-to-date.
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