TSMC Reports 30% Sales Growth in First Two Months
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 10 2026
0mins
Source: Benzinga
- Significant Sales Growth: TSMC reported a revenue of NT$718.9 billion ($22.6 billion) in the first two months of 2026, reflecting a 30% year-over-year increase, driven by strong spending on AI infrastructure prior to the Middle East conflict.
- February Growth Slowdown: February sales saw a 22% year-over-year increase, a notable slowdown from January's 36.8%, primarily due to the Lunar New Year affecting the comparison base, making February's growth appear less representative.
- Geopolitical Impact: Semiconductor stocks, including TSMC, fell as the PHLX Semiconductor Index dropped over 2% and the Nasdaq Composite fell nearly 2%, amid rising tensions from U.S. export policy discussions and the U.S.-Iran conflict, increasing investor uncertainty.
- Rising Supply Chain Risks: The Middle East conflict raised concerns about semiconductor supply chains, particularly regarding helium supply risks, as Amazon reported drone strikes damaging its data centers in the UAE and Bahrain, further heightening risks for AI infrastructure projects.
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Analyst Views on TSM
Wall Street analysts forecast TSM stock price to fall
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 408.750
Low
63.24
Averages
313.46
High
390.00
Current: 408.750
Low
63.24
Averages
313.46
High
390.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based integrated circuit foundry service provider. The Company is primarily engaged in integrated circuit manufacturing services. It offers advanced process technologies, specialised process solutions, advanced photomask and silicon stacking, and packaging-related technologies, while supporting a comprehensive design ecosystem. The Company's products serve diverse electronic sectors including artificial intelligence, high-performance computing, wired and wireless communications, automotive and industrial equipment, personal computing, information applications, consumer electronics, smart internet of things, and wearable devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TSMC Reports 30.1% Revenue Growth in May 2026
- Significant Revenue Growth: TSMC reported May 2026 revenue of NT$416.98 billion, reflecting a 1.5% increase from April and a 30.1% year-over-year growth, indicating robust demand for advanced chip manufacturing that solidifies its market position.
- Strong Year-to-Date Performance: For the first five months of 2026, TSMC generated NT$1.96 trillion in revenue, a 30.0% increase compared to the same period last year, showcasing the company's sustained growth potential in high-performance computing and AI-related chips.
- Robust Client Demand: TSMC supplies semiconductors to major tech companies including Apple, Nvidia, and AMD, with strong demand for AI chips and high-performance computing applications serving as key growth drivers, ensuring its competitive edge in the industry.
- Stock Price Volatility: Despite strong revenue growth, TSMC shares fell approximately 2.2% in Taiwan trading on Wednesday, reflecting market caution regarding the company's future performance, which could impact investor confidence.
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- Major Companies Hit: Nvidia (NVDA) saw its stock price fall by more than 6%, Taiwan Semiconductor Manufacturing (TSM) slipped nearly 7%, and even Broadcom (AVGO), which released strong earnings, was not spared, dropping nearly 8% on Friday, reflecting widespread concerns about the semiconductor sector.
- Investor Reaction: Despite the significant pullback, analysts believe the semiconductor sector still holds strong growth potential, particularly driven by demand from artificial intelligence, and investors are advised to consider increasing their positions in related stocks to capitalize on future rebound opportunities.
- Industry Outlook Positive: TSMC's share of the global foundry market has risen to 73%, with expectations of doubling earnings over the next three years, showcasing its robust competitiveness in AI chip manufacturing and further solidifying its market leadership.
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- ASML's Unique Position: ASML is the only company globally producing the $400 million extreme ultraviolet lithography machine, and without it, leading chip manufacturers like TSMC, Samsung, and Intel cannot produce cutting-edge AI chips, underscoring its critical role in the global chip supply chain.
- Tax Incentive Support: SpaceX secured tax incentives for the Terafab project in Texas despite local opposition, which will help reduce project costs and accelerate construction, further solidifying SpaceX's position in the chip manufacturing sector.
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- Significant Revenue Growth: TSMC reported May 2026 revenue of NT$416.98 billion, reflecting a 1.5% increase from April and a 30.1% year-over-year growth, indicating robust demand for advanced chip manufacturing that solidifies its market position.
- Strong Year-to-Date Performance: For the first five months of 2026, TSMC generated NT$1.96 trillion in revenue, a 30.0% increase compared to the same period last year, showcasing the company's sustained growth potential in high-performance computing and AI-related chips.
- Robust Client Demand: TSMC supplies semiconductors to major tech companies including Apple, Nvidia, and AMD, with strong demand for AI chips and high-performance computing applications serving as key growth drivers, ensuring its competitive edge in the industry.
- Stock Price Volatility: Despite strong revenue growth, TSMC shares fell approximately 2.2% in Taiwan trading on Wednesday, reflecting market caution regarding the company's future performance, which could impact investor confidence.
See More
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- Market Collapse: On June 5, semiconductor stocks lost a staggering $1.4 trillion in market cap in a single day, with the PHLX Semiconductor Sector Index dropping over 10%, primarily due to a stronger-than-expected jobs report that increased the likelihood of the Federal Reserve raising interest rates, leading to panic selling among investors.
- Major Companies Hit: Nvidia (NVDA) saw its stock price fall by more than 6%, Taiwan Semiconductor Manufacturing (TSM) slipped nearly 7%, and even Broadcom (AVGO), which released strong earnings, was not spared, dropping nearly 8% on Friday, reflecting widespread concerns about the semiconductor sector.
- Investor Reaction: Despite the significant pullback, analysts believe the semiconductor sector still holds strong growth potential, particularly driven by demand from artificial intelligence, and investors are advised to consider increasing their positions in related stocks to capitalize on future rebound opportunities.
- Industry Outlook Positive: TSMC's share of the global foundry market has risen to 73%, with expectations of doubling earnings over the next three years, showcasing its robust competitiveness in AI chip manufacturing and further solidifying its market leadership.
See More
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- Historic IPO: SpaceX plans to go public on June 12 with a target valuation of $1.77 trillion, making it the largest IPO in history; however, its valuation stands at 95 times its 2025 sales, indicating potential overvaluation risks.
- Oversubscription Phenomenon: The IPO is reportedly more than four times oversubscribed, suggesting that it could start trading at over 100 times sales, which raises concerns for an unprofitable company.
- Competitor Analysis: In contrast to SpaceX, Broadcom and ASML are viewed as more stable investment options, with Broadcom's AI chip sales surging 65% in fiscal 2025 and projected to reach $100 billion by 2027, highlighting its strong growth potential in the AI market.
- ASML's Market Position: As the sole producer of extreme ultraviolet (EUV) lithography systems, ASML is expected to see revenue and EPS grow at CAGRs of 17% and 26% from 2025 to 2028, solidifying its critical role in the semiconductor market.
See More
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- IPO Pricing and Market Expectations: SpaceX is set to debut on Nasdaq at $135 per share, establishing an initial market cap of $1.77 trillion, with widespread expectations of a significant price surge on its first trading day, reflecting strong investor confidence in its future performance.
- Market Value Predictions: According to Polymarket traders, there is an 84% chance that SpaceX will close above $1.8 trillion in market cap and a 69% chance of surpassing $2 trillion, indicating a bullish outlook on its growth potential.
- First Day Trading Potential: The expected jump of over 20% on its first trading day could elevate SpaceX's market cap to approximately $2 trillion, further solidifying its leadership position among global tech companies.
- Comparison with Competitors: Should SpaceX successfully exceed a $2 trillion valuation, it would join an exclusive group of only five other U.S. companies—Nvidia, Apple, Alphabet, Microsoft, and Amazon—highlighting its significance in the industry.
See More
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- Investor Enthusiasm: Jim Cramer strongly recommended Intel stock during Thursday's Morning Meeting, labeling it as his top pick in the chip sector and emphasizing its crucial role in AI data center buildouts, which significantly heightened investor interest in the stock.
- Stock Price Surge: Following Bank of America's upgrade of Intel from sell to buy, the stock jumped nearly 8% on Thursday, with the price target raised from $96 to $135, reflecting increased market confidence in Intel's ability to benefit from AI spending.
- Optimistic Market Outlook: Bank of America projects Intel's server CPU sales to reach $40 billion by 2030, significantly above the consensus estimate of $32.5 billion, indicating a potential 25% market share in a total addressable market of $170 billion.
- Manufacturing Capability Enhancement: Intel's chip manufacturing business is increasingly positioned to alleviate supply chain bottlenecks, particularly through its partnership with Cadence Design Systems, which boosts confidence in the long-term viability of its operations and execution capabilities.
See More
Musk Highlights ASML's Importance in Chip Manufacturing
- Terafab Project: Musk emphasized during ASML's annual technology conference that the Terafab project will pivot SpaceX from rocket manufacturing to advanced chip production, with an estimated investment between $55 billion and $119 billion, reflecting a significant commitment to future technology.
- ASML's Unique Position: ASML is the only company globally producing the $400 million extreme ultraviolet lithography machine, and without it, leading chip manufacturers like TSMC, Samsung, and Intel cannot produce cutting-edge AI chips, underscoring its critical role in the global chip supply chain.
- Tax Incentive Support: SpaceX secured tax incentives for the Terafab project in Texas despite local opposition, which will help reduce project costs and accelerate construction, further solidifying SpaceX's position in the chip manufacturing sector.
- Employee Opposition: While Musk's remarks highlighted ASML's significance, some employees expressed opposition to his political involvement, arguing it conflicts with ASML's neutral values, potentially impacting the company's image and employee morale.
See More
