Investment Research Report: Taiwan Semiconductor Manufacturing Co Ltd (TSM)

With 58% profit growth, unmatched leading-edge capacity, and a PEG below 1.0, TSMC's dominance is strengthening quarter by quarter — but Taiwan concentration remains the unhedgeable asterisk

Executive Summary

TSMC is delivering its strongest operational performance in company history. Q1 2026 produced 58% net income growth on 35-41% revenue growth, the fourth consecutive record profit quarter, with HPC now comprising 61% of revenue. TSMC is projected to ramp its most advanced 2nm and A16 capacity at a 70% CAGR from 2026 to 2028, and demand f…