TSMC Trades at $428 as 24/7 Wall St. Sets $492 Target on Record August Sales

AnalystAnalystEarnings
โดย 24/7 Wall St.·TW·Read original
Summary · why it matters

Taiwan Semiconductor Manufacturing is trading at $428.29 against a 24/7 Wall St. price target of $492.37, implying 14.96% upside on a buy rating with 90% confidence. The call rests on record August 2026 revenue that surged 53.3% year over year, with January-through-August revenue up 39.3%, prompting management to raise full-year 2026 revenue guidance to slightly above 40% USD growth. Q2 2026 delivered EPS of $4.31 against a $3.8866 estimate, revenue of $40.20 billion, up 36.05% year over year, and a 67.7% gross margin, while Q3 revenue is guided to $44.6 billion to $45.8 billion and the 2026 capital budget was raised to $60 billion to $64 billion. The bull case leans on demand from Nvidia, whose Q3 guide of $108 billion, and Broadcom, whose Q3 FY26 AI semiconductor revenue reached $16.7 billion, up 221% year over year, effectively lock in TSMC's advanced-node order book, while Intel Foundry lost $2.1 billion in its latest quarter. The main near-term risk is gross-margin compression, with the 2nm ramp expected to dilute gross margin by 3 to 4 percentage points and overseas fabs adding another 2 to 3 points of drag, alongside Taiwan-Strait geopolitics as an unpriced tail risk; the bear-case one-year price is $413.79 against a bull case of $525.08 and a sell-side consensus target of $552.38.

Impact on stocks 5

Artificial Intelligence▲ · 3 stocks
Broadcom Inc
AVGO
▲ PositiveDemandrelevance

Broadcom's Q3 FY26 AI semiconductor revenue of $16.7B, up 221% YoY, is cited as locking in TSMC's advanced-node order book, indicating strong AI chip demand

NVIDIA Corporation
NVDA
▲ PositiveDemandrelevance

Nvidia's Q3 guide of $108 billion is cited as locking in TSMC's advanced-node order book, reflecting strong AI chip demand

Semiconductors± Mixed · 2 stocks
Intel Corporation
INTC
▼ NegativeCompetitionrelevance

Intel Foundry lost $2.1 billion in its latest quarter, highlighting competitive weakness versus TSMC

Theme Impact 8

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