Key Stats for Taiwan Semiconductor Stock
- Price change for Taiwan Semiconductor stock in last 6 months: 11%
- $TSM Stock Price as of Oct. 16: $75
- 52-Week High: $81
- $TSM Stock Price Target: $104
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What Happened?
Taiwan Semiconductor (TSM) just posted a strong Q3.
Revenue hit $46.7 billion, up 16.2% from the prior quarter, beating the high end of the company’s own guidance.
CEO C.C. Wei said demand is still higher than supply and added that the company is working hard to narrow the gap.
The next quarter looks even bigger as Taiwan Semiconductor expects revenue of $52.3 billion to $54.3 billion.
At the midpoint, that is about 58% higher than a year ago, and full-year 2026 revenue growth should be around 44%.
To keep up, the company is spending heavily, with a 2026 capital budget of $60 billion to $64 billion. It has nearly 20 fabs in progress worldwide.
Its 2-nanometer capacity is set to more than double in 2027, and a second Arizona fab should start volume production in Q3 2027.
Gross margin fell 1.3 points to 66.4% as the 2-nanometer ramp began, while operating margin stood at 58.7%.
Overseas fabs will also weigh on margins, and the hit should be about two points this year and 3 to 4 points in the next few years.
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What the Market Is Telling Us About Taiwan Semiconductor Stock
The message for Taiwan Semiconductor stock is simple. Demand is not the problem. Supply is.
High-performance computing made up 68% of Q3 revenue, which shows how much AI demand drives the business. Wei said the company sees no sign of a slowdown.
According to CNBC, the top 10 customers made up 78% of revenue in 2025.
That leaves startups competing with giants for capacity. Some chipmakers want a second source, which could help Samsung and Intel.
Wei said consumer and price-sensitive markets are being hurt by rising component prices.
Because of this, the company is being prudent about 2027, and margin pressure from new fabs is also real.
Overall, Taiwan Semiconductor stock now hinges on one question. Can the company build capacity fast enough to match AI demand? Management says demand is still ahead of supply.
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So what is Taiwan Semiconductor stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
