Analysts highlight early competitive pressures on TSMC as major clients explore alternatives.
Taiwan Semiconductor Manufacturing Company is projected to achieve around 32 percent year-over-year revenue growth in fiscal 2026, driven primarily by strong demand in high-performance computing for artificial intelligence applications. This outlook exceeds the company's own guidance, based on its historical performance in surpassing expectations. Gross margins are expected to face temporary pressure of up to 700 basis points from the ramp-up of 2-nanometer technology and overseas fabrication facilities.
