TSMC just posted one of the best quarters in semiconductor history. Revenue hit $40.2 billion, net profit surged 77.4% year-over-year, and the company raised its full-year growth outlook. The stock dropped 7.3%.
The Taiwan Semiconductor Manufacturing Co. selloff on July 17 rippled across Asian markets, dragging down chip stocks throughout the region.
The numbers that should have been a victory lap
TSMC’s Q2 2026 revenue of $40.2 billion, equivalent to roughly NT$1.27 trillion, represented a 36% increase compared to the same period last year. That figure landed at the very top of the company’s prior guidance range of $39 billion to $40.2 billion.
Net income came in at NT$706.56 billion with a gross margin of 67.7%. Both figures exceeded analyst expectations.
