NEW YORK, August 19, 2026, 15:12 EDT — U.S. cash markets traded during regular hours.
- Samsung increased certain foundry prices by up to 15%.
- TSMC reported a 44.7% increase in revenue for July compared with the same month last year.
- At 14:57:59 EDT, TSM shares were priced at $413.08, showing little change.
Taiwan Semiconductor Manufacturing Company NYSE:TSM shares showed little change on Wednesday, but a competitor’s price hike indicated that TSMC’s production capacity remains in short supply.
Samsung Electronics KRX:005930 raised prices for certain 4-nanometer, 5-nanometer, and 8-nanometer foundry offerings. Some Chinese and U.S. customers saw hikes ranging from 10% to 15%, according to Reuters. Capacity limits at TSMC have contributed to increased demand for rival foundries.
This holds greater significance than the immediate boost to Samsung’s revenue. It establishes a benchmark for limited chip production capacity. According to Reuters, TSMC accounted for over 70% of global foundry revenue in the first quarter, while Samsung had around 7%.
| Market snapshot | TSM | Investor read |
|---|---|---|
| Price | $413.08 | Little movement through the session |
| Day change | -0.08% | Scarcity report yet to impact price |
| Day range | $407.88-$419.60 | Daily volatility at 2.9% |
| 52-week range | $223.70-$479.00 | Still 13.8% under peak |
| P/E ratio | 30.18 | Valuation hinges on margins |
The stock’s limited reaction highlights the investor perspective. Customers are facing higher prices from other suppliers. TSMC needs to demonstrate that constrained capacity justifies its pricing and margins.
Demand signals continue to be robust. Preliminary revenue for July totaled NT$467.58 billion, marking a 44.7% increase from a year earlier. The figure was also 5.6% higher than in June. Revenue for the first seven months climbed 37.0% to NT$2.872 trillion.
| Operating measure | Q2 2026 actual | Q3 2026 guidance | Change/read-through |
|---|---|---|---|
| Revenue | $40.20bn | $44.6bn-$45.8bn | Midpoint rises 12.4% from prior quarter |
| Gross margin | 67.7% | 65.0%-67.0% | Midpoint falls by 1.7 points |
| Operating margin | 60.3% | 56.0%-58.0% | Midpoint falls by 3.3 points |
| Advanced-node wafer revenue | 77% | Not guided | Strong mix supports price levels |
The outlook for the following quarter comes with a warning. Revenue is expected to see strong growth, though margins at the midpoint are projected to soften. Increased expenses from overseas manufacturing and elevated investments may offset some of the scarcity gains.
Even so, the company faced this pressure starting from a strong foundation. Revenue for the second quarter increased by 33.7% in U.S. dollars. Net income in Taiwan dollars rose by 77.4%, and 2-nanometer manufacturing contributed 3% to wafer revenue.
| Scarcity indicator | TSMC | Samsung |
|---|---|---|
| Share of global foundry revenue, Q1 2026 | Over 70% | Roughly 7% |
| Latest pricing sign | Supply is tight | Certain services increased by 10%-15% |
| Exposure to advanced demand | AI and high-performance computing sectors | Backlog plus AI-driven orders |
| Impact for investors | Chance to increase prices | Potential for higher utilization and margin improvement |
Chief Executive C.C. Wei has stated the situation for demand in clear terms. “Our conviction in the AI megatrend is strengthening,” he told shareholders. The company is expanding its production of leading-edge chips and advanced packaging, aiming for robust returns. TSMC 2025 annual report
Wall Street sentiment is positive. According to Google Finance, analysts have issued six buy ratings and one hold in their latest coverage. The mean price target stands at $545.67, representing a 32.1% premium over the current share price.
| Analyst | Firm | Recommendation | Target | Date |
|---|---|---|---|---|
| Haas Liu | Bank of America Securities | Buy, maintained | Not disclosed | Aug. 18, 2026 |
| Mark Li | Bernstein | Buy, maintained | $554 | Aug. 11, 2026 |
| Charles Shi | Needham | Buy, reiterated | $530 | Jul. 27, 2026 |
| Gil Luria | D.A. Davidson | Buy, reiterated | $500 | Jul. 17, 2026 |
| Krish Sankar | TD Cowen | Hold, maintained | $440 | Jul. 17, 2026 |
The target range spans widely. The lowest presently stands at $440, which is 6.5% higher than TSM. The highest target is $650. Investors show more consensus on demand, but diverge on how much profit TSMC will keep.
The next assessment concerns margin conversion. Samsung’s increase demonstrates that customers are willing to pay for capacity. TSMC’s gross margin for the third quarter will indicate the extent to which that scarcity benefits shareholders.
Risks: Accelerated capacity growth may pressure prices. Expenses from expanding abroad could affect margins, and export limits, reliance on key customers, and geopolitical issues linked to Taiwan continue to be significant factors.
Related articles: NYSE:TSM
Scarcity is real. Margin capture is the test.
Company data: Q2 2026 and July 2026
Revenue momentum
What the market is pricing
Operating bridge
| Measure | Q2 actual | Q3 guide | Investor read |
|---|---|---|---|
| Revenue | $40.2B | $44.6B-$45.8B | Growth intact |
| Gross margin | 67.7% | 65%-67% | Scarcity partly offset by cost |
| Operating margin | 60.3% | 56%-58% | Expansion burden visible |
| Advanced-node mix | 77% | Not guided | Supports pricing power |
