TSM Q2 Earnings Call Highlights AI Capacity Push, Margin Focus

Taiwan Semiconductor reported Q2 2026 revenues of $40.20 billion and EPS of $4.31, beating consensus estimates, with gross margin at 67.7% and operating margin at 60.3%. TSM raised its 2026 capital budget to $60-$64 billion and its revenue growth outlook to slightly above 40% YoY, driven by strong AI and HPC demand, with 70-80% of spending directed at advanced process technologies.

Why it matters: The company expects Q3 revenues of $44.6-$45.8 billion with 65-67% gross margin, while noting that the 2-nanometer ramp (now at 3% of wafer revenue) will create near-term margin pressure despite strong long-term demand.