TSMC, or Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, raised its 2026 spending and revenue outlook on Thursday morning, a move UBS analysts said "boosts confidence in the AI supply chain."
TSMC manufactures chips designed by companies such as Nvidia, Apple, AMD, Qualcomm and Broadcom. It is a major supplier of Nvidia chips used in AI data centers. The company now expects 2026 capital expenditures of $60 billion to $64 billion, up from its previous forecast of $52 billion to $56 billion, while projecting dollar-denominated revenue growth of slightly more than 40%.
Here are second quarter results (courtesy of Bloomberg):
- Net income NT$706.6 billion, estimate NT$623.73 billion
- Gross margin 67.7%, estimate 67.1%
- Operating profit NT$766.6 billion, estimate NT$742.75 billion
- Operating margin 60.3%, estimate 58.6%
- Sales NT$1.27 trillion, estimate NT$1.27 trillion
Third quarter forecast:
- Sees sales $44.6 billion to $45.8 billion, estimate $43.11 billion (Bloomberg Consensus)
- Sees gross margin 65% to 67%, estimate 65.9%
- Sees operating margin 56% to 58%, estimate 57.7%
"AI-related demand continues to be extremely robust," TSMC Chairman C.C. Wei told analysts on a post-earnings call.
TSMC also plans to invest another $100 billion in Arizona, lifting that total commitment to $265 billion. The expansion will include additional 2-nanometer chip plants and advanced packaging facilities to meet multi-year demand across the Americas.
Wei added
