Taiwan Semiconductor Manufacturing shares had risen more than 46% in 2026 through Sept. 23, versus Nvidia’s 21%, as AI-infrastructure demand lifted its chipmaking business. TSMC’s second-quarter revenue increased 33.7% year over year to $40.2 billion.
TSMC makes chips designed by other companies, including Nvidia’s GPUs, and also manufactures for Apple, Microsoft, Alphabet and Amazon. In the second quarter, its gross margin rose to 67.7% from 58.6% a year earlier; operating margin climbed to 60.3% from 49.6%, and net profit margin to 55.6% from 42.7%.
TSMC forecast third-quarter revenue of $44.6 billion to $45.8 billion, which would be 34.7% to 38.4% above the $33.1 billion recorded in Q3 2025. The article’s author, who disclosed owning TSMC shares, said the stock was worth its premium despite trading at 26.5 times projected earnings for the next 12 months.
