By Phelix Lee
Publication Date: 2026-04-17 00:00:00
Key Morningstar metrics for TSMC
- Estimation of fair value: $428
- Morningstar Rating: ★★★★
- Morningstar Economic Moat Rating: Broad
- Morningstar Uncertainty Rating: Medium
What we thought of TSMC’s earnings
Taiwan Semiconductor Manufacturing Co. TSMC has adjusted its 2026 revenue and capital expenditure forecast in U.S. dollars to match previous range caps. First quarter revenue exceeded TWD 1.1 trillion (US$35.9 billion), up 6% quarter-on-quarter. Gross margin increased 746 basis points quarter-over-quarter to 62.3%.
Why it matters: The capital expenditure forecast is now approaching the previous cap of $56 billion, while the forecast for revenue growth has been raised from around 30% to over 30%. Both support the strength of the near-term and three- to five-year demand outlook for artificial intelligence applications.
- We expect the second wave of 3-nanometer capacity expansions in Taiwan, Arizona and Japan, as well as management’s view that 3-nanometer profitability will approach company average in the second half of the year, imply…
