TSMC Stock Forecast: TSM Reported $35.9B Revenue. Why Is Demand Still Outpacing Supply? - TradingKey

Taiwan Semiconductor Manufacturing Company (TSMC) reported Q1 2026 revenue of $35.9 billion, with net income up 58% to NT$572.48 billion and a gross margin of 66.2%. The company's performance undersco... Read original →

TSMC’s Q1 2026 revenue of $35.9B—driven by AI chips accounting for 61%—highlights its structural dominance in advanced nodes and CoWoS packaging. Technologically, stable 3nm yields and imminent 2nm risk production are accelerating EUV adoption and heterogeneous integration ecosystems, forcing EDA, substrate, and test equipment suppliers to upgrade in lockstep. Geopolitically, delayed U.S. CHIPS Act disbursements and tighter Japanese material controls have raised overseas fab costs, yet localized capacity strengthens TSMC’s pricing power over clients like NVIDIA. Samsung’s 3nm GAA yield issues and Intel’s 18A delays eliminate near-term competition, though OSATs like ASE could leverage chiplet standards to encroach on advanced packaging. Over the next 12–24 months, persistent CoWoS bottlenecks will inflate AI chip lead times and premiums, while successful 2nm ramp-up in 2027 would secure a three-year HPC leadership window—cementing manufacturing as TSMC’s ultimate moat.