Taiwan Semiconductor (TSM) Grew Profits 77.4%. Is Its Premium Valuation Justified?

What happened: Taiwan Semiconductor Manufacturing (NYSE:TSM) reported second quarter 2026 results with revenue up 36.0% to NT$1,270.38 billion, and net income and diluted earnings per share both up 77.4%. Key numbers: Q2 2026 revenue NT$1,270.38 billion, up 36.0%. Net income and diluted EPS up 77.4%. Why it matters: Investors pay more per dollar of TSMC's expected earnings than the five year average, so the premium depends on whether the growth engine lasts. The content notes few rivals offer comparable leading edge capacity, making customers slow to shift. Market: -1.9% by next close ($444.59 on Oct 12), +35.3% YTD

Taiwan Semiconductor Manufacturing (NYSE:TSM) reported second quarter 2026 results with revenue up 36.0% to NT$1,270.38 billion, and net income and diluted earnings per share both up 77.4%.

Investors pay more per dollar of TSMC's expected earnings than the five year average, so the premium depends on whether the growth engine lasts. The content notes few rivals offer comparable leading edge capacity, making customers slow to shift. Market: -1.9% by next close ($444.59 on Oct 12), +35.3% YTD