Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) delivered a fifth consecutive record quarterly profit, beating Wall Street expectations. At the time of writing, TSMC stock rose 1.23% to close at NT$2,470 ($76.72) in Taipei.
TSMC Revenue, Profit Top Estimates
TSMC reported second-quarter net income of NT$706.56 billion ($22 billion), up 77.4% from a year earlier and well above the NT$632.64 billion analysts had expected.
Net income also climbed 23.4% from the previous quarter, marking the chipmaker’s highest quarterly earnings on record for the fifth straight quarter.
Revenue rose to NT$1.27 trillion ($39.45 billion) during the April-June period, topping the consensus estimate of NT$1.264 trillion and increasing 36% from NT$933.79 billion in the same quarter last year.
The company said its most advanced manufacturing technologies — 7-nanometer and below — accounted for 77% of total wafer revenue.
Earlier this week, TSMC also reported robust June sales, capping another quarter of record-breaking financial performance.
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Nvidia, Apple AI Demand Boosts TSMC
TSMC has emerged as one of the biggest beneficiaries of the global AI boom, manufacturing advanced processors for technology giants including Nvidia Corp. (NASDAQ:NVDA), Apple Inc. (NASDAQ:AAPL) and Broadcom Inc. (NASDAQ:AVGO).
Strong demand for AI accelerators and other high-end chips has helped the company consistently exceed expectations while expanding its profitability.
“The second quarter was supported by strong demand for our industry-leading process technologies,” said Wendell Huang, Senior VP and Chief Financial Officer of TSMC.
TSMC Stock Declines
TSMC said it expects third-quarter 2026 revenue to range between $44.6 billion and $45.8 billion. Based on an exchange rate assumption of NT$32 to the U.S. dollar, the company forecast a gross profit margin of 65% to 67% and an operating profit margin of 56% to 58%.
Price Action: TSMC closed down 0.22% at $419.48 on Wednesday and fell another 3.76% to $403.71 in Thursday’s premarket trading, according to Benzinga Pro.
TSMC stock ranks in the 97th percentile for Quality on Benzinga Edge, reflecting strong performance across short, medium and long-term metrics.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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