Taiwan Semiconductor Manufacturing Company issues detailed revenue updates on the 10th of each month, giving investors advance insight into chip demand trends before quarterly earnings. In the first two months of 2026, the foundry reported combined revenues of NT$1.95 trillion, up 12% year-over-year, driven largely by AI chip orders from leading cloud providers. These monthly snapshots allow analysts to model end-market inventory builds and adjust semiconductor capital expenditure forecasts two months ahead of the next quarterly release.

In its fiscal Q4, the company saw revenue growth decelerate to 4.3% sequentially as wafer fab utilization hit 100% across its 5-nanometer and 7-nanometer lines. Despite the capacity bottleneck, gross margin expanded by 210 basis points to 56.8%, reflecting favorable product mix from high-performance computing wafers. Research and development spending rose 18% year-over-year to NT$240 billion, signaling commitment to next-generation nodes even as short-term production reached its limits.

Management plans to invest NT$650 billion in 2026 capital expenditure, split between Taiwan and new Arizona fabrication facilities. The Taiwan expansion will add 200,000 wafer starts per month by year-end, while the U.S. plant is scheduled to begin volume production in late 2026. These capacity increases are expected to alleviate current supply constraints and position the company to capture an estimated 45% share of the global advanced logic foundry market in 2027.

Despite its leadership role in the AI chip ecosystem, the company’s forward price-to-earnings multiple trades at a 15% discount to its closest peer group. Consensus earnings estimates imply 14% compound annual growth through 2028, driven by node transitions and capacity ramp. Should the planned fabs come online on schedule and yield improvements sustain, institutional investors could re-rate the stock to peer levels, unlocking potential upside in the second half of 2026.