TSMC Q2 2026 Earnings: Record Revenue Driven by AI and HPC Demand

TSMC reported Q2 2026 revenue of USD 40.2 billion at the high end of guidance, with gross margin expanding 150 bps sequentially to 67.7%, driven by 20% QoQ HPC revenue growth that now accounts for 66% of total revenue. The company raised its full-year 2026 capital budget to USD 60-64 billion and expects full-year revenue growth slightly above 40% YoY, with Q3 revenue guidance of USD 44.6-45.8 billion.

Why it matters: Headwinds include 2-nanometer ramp diluting gross margins by 3-4 percentage points in H2 2026, weak mature-node commodity demand, and increased inventory days from the 2nm transition.