TSMC Stock Slides Despite Crushing Q2 Estimates With Fifth Straight Record Profit

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.

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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