TSMC Gross Margin Expected to Reach 70%, Beating Guidance

businesscompany-earningsaiai-infrastructureai-compute-chips 2 posts · 2 accounts

TSMC is expected to report a second-quarter gross margin nearing 70%, potentially beating management guidance when Taiwan Semiconductor Manufacturing Co. releases financial results on July 16. According to media reports citing analysts, the margin is projected to reach approximately 70%, which would exceed the 65.5% to 67.5% range the company issued with its previous outlook. The contract chipmaker's strong performance reflects sustained demand for advanced semiconductor manufacturing, particularly for artificial-intelligence accelerators.

Analysts also project TSMC's third-quarter revenue will rise by 10% compared with the second quarter, extending a streak of record-breaking sales. The positive outlook suggests the company is likely to raise its full-year 2026 revenue guidance, which currently forecasts growth of more than 30%.

From the sources (2 posts)

@dnystedt

TSMC’s 2nd quarter gross margin is seen nearing 70% – beating guidance – when it reports July 16 at its quarterly conference, media report: Q3 revenue is expected to rise 10% vs Q2 as TSMC’s string of record-breaking quarterly revenue cont

@news2082680

📈 #TSMC earnings could be setting up for an upside surprise — analysts reportedly see 2Q margins breaking past 67.5% guidance toward ~70%, with 3Q sales also tracking for >10% growth to new highs.💡More: 🔗 https:/

Market impact

42 medium

TSM SOXX NVDA SMH ASML

Why it matters: A projected TSMC Q2 gross margin near 70% beating its own 65.5-67.5% guidance, plus a likely full-year revenue guidance raise, confirms sustained AI-accelerator demand and pricing power, a positive read-through for the whole advanced-chip supply chain (SOXX/SMH, NVDA, ASML) not just TSMC's own stock.

At publish time: Headline states an analyst-projected ~70% gross margin beating the issued 65.5-67.5% guidance and a likely FY2026 guidance raise, both quantified tradable hooks; but it is a pre-earnings projection, not the actual July 16 print.

model confidence: medium

What happened next

1–2 weeks later

played out moved up

TSMC raised full-year revenue outlook to 40% and Q2 revenue hit $40.2B beating guidance on AI demand; chip supply chain broadly strong.

based on follow-up coverage

Follow-up coverage

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