TSM Stock Rises Overnight: CFO Says 'Don't Plan To Leave Food On Table' After Confirming Bumped-Up US Investment

Micron confirmed TSMC will manufacture base dies for its next-gen HBM, joining SK Hynix and Samsung in outsourcing. This shift is driven by HBM's evolution toward customer-specific solutions, with TSMC gaining influence. Citi projects 62% HBM demand growth next year, citing robust AI memory demand.

TSMC has secured approval for expanding its Longan Park in Taiwan's Hsinchu Science Park, with plans to manufacture chips using sub-1.4-nanometer technology. The expansion, costing NT$95 billion, includes three factories, with the first expected to enter production in 2030. TSMC aims to improve logic density, performance, and power efficiency with its advanced technologies, as it competes with Intel in the semiconductor race.

Taiwan Semiconductor (TSM) plans a $31.4B expansion in Longtan for advanced semiconductor processes. The project includes three new wafer fabrication plants, with the first expected to be operational by 2030. TSMC's stock is currently overvalued by 18.2% according to GF Value™, with a GF Score™ of 98/100. The company has a strong financial strength rating of 9/10 and a P/E ratio of 31.05, higher than its 5-year median of 22.78.

TSMC's shares rose 1.6% to $424.59 after MediaTek's Dimensity 9600 Pro smartphone chip, using TSMC's 2-nanometer tech, was announced. The chip improves neural processing by 51% over the prior generation. TSMC's 2-nanometer products made up 3% of Q2 wafer revenue, while 3-nanometer and 5-nanometer products accounted for 30% and 33%, respectively. Investors focus on execution and adoption rates for the new technology.

GlobalFoundries (GFS) and Taiwan Semiconductor (TSM) reported contrasting results. GFS, with a lower forward P/E of 17, saw 5.8% revenue growth, driven by a 62% jump in its data-center segment. CEO Tim Breen highlighted silicon-photonics revenue growth and oversubscribed silicon germanium. TSM reported 36% revenue growth, with strong AI chip demand and raised full-year guidance. GFS reduced capital spending significantly, while TSM committed $265 billion to Arizona. Investors may consider GFS fo

TSMC reported Q2 2026 revenue of NT$1.27 trillion, up 36% YOY, with operating margin at 60.3%. EPS rose to $4.31. Advanced nodes (7nm and below) contributed 77% of wafer revenue. Analysts expect EPS growth of 52% YOY in Q3 2026 and 55% for fiscal 2026. TSM trades at a P/E of 26.1x, below industry average. Analysts maintain 'Buy' ratings with price targets up to $650.