Taiwan Semiconductor Manufacturing Co., or TSMC (TSM), is set to report its first-quarter 2026 earnings on Thursday, April 16. While the company has already reported strong revenue for the quarter, investors will now focus closely on margins and profitability. According to its March report, TSMC’s Q1 revenue jumped about 35% year over year, coming in at T$1.134 trillion ($35.71 billion), beating market expectations. Looking ahead, TSM’s bullish outlook is backed by continued demand for advanced semiconductors used in AI data centers, high-performance computing, and next-generation smartphones. Analysts expect an average 14% upside, while the most bullish estimates suggest the stock could rise by roughly 27%.
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Trade NVDA with leverageFor context, TSMC is the world’s largest contract chipmaker. The company supplies advanced semiconductors to top tech giants, including Apple (AAPL) and Nvidia (NVDA). Over the past 12 months, TSM stock has surged more than 135%.
What to Expect from TSM’s Q1 Earnings
Wall Street expects Taiwan Semiconductor Manufacturing to report earnings of $3.29 per share, up more than 50% from a year ago.
Looking ahead, the company expects Q1 gross margin of 63% to 65%. TSMC also plans to invest heavily in capital spending of $52–$56 billion in 2026, with 70% to 80% of the funds allocated toward advanced technologies—highlighting its focus on next-generation chip production.
For 2026, TSMC expects revenue to grow around 30% in U.S. dollar terms. To better understand where this growth is coming from, the chart below shows TSMC’s revenue breakdown by technology over the past few quarters.
Analysts Stay Bullish on TSM Stock
Recently, Bank of America (BofA) named TSMC as one of its top Asia-Pacific semiconductor picks, citing strong demand for AI chips. BofA analyst Hass Liu maintains a Buy rating on the stock, with a $470 price target—implying about 29% upside from current levels.
Meanwhile, GF Securities (Hong Kong) raised its price target on TSMC’s Taiwan-listed stock to NT$2,808 from NT$2,325 ahead of earnings. Analyst Jeff Pu expects TSM to report strong margins and raise its full-year outlook. This is mainly driven by high utilization of its advanced N2 and N3 chips, better pricing, and premium demand from AI customers.
Pu further noted that even though there has been some softness in smartphone-related demand and minor adjustments tied to Nvidia, Pu believes strong demand for AI chips, memory (HBM4), networking, and servers will continue to support growth. Demand from Apple also remains solid, supported by its latest chip lineup.
What Is TSM’s Stock Price Target?
According to TipRanks, TSM stock has a Strong Buy consensus rating based on six Buys and one Hold assigned in the last three months. At $423.50, TSMC’s average stock price target implies an upside of 14.3% from the current level.
