Taiwan Semiconductor Manufacturing Co. Ltd. may raise prices for its 3nm foundry services by as much as 15% in the second half of 2026 as demand continues to exceed supply. The potential price increase comes despite the company expanding its monthly 3nm production capacity to between 160,000 and 175,000 wafers in the second quarter. Strong demand, particularly from artificial intelligence applications, is keeping advanced-node capacity tight and maintaining order backlogs.

The shortage of leading-edge manufacturing capacity remains a significant bottleneck in the semiconductor industry. Ongoing expansion efforts at Taiwan Semiconductor’s Fab 18 complex in Taiwan’s Southern Taiwan Science Park have not yet alleviated the pressure. AI-driven demand is growing faster than expected, reinforcing the scarcity of the company's most advanced chips.

Stock Performance And Technical Analysis

Taiwan Semiconductor shares edged higher in premarket trading, gaining roughly 0.27% to $422.20. The stock is in a strong long-term uptrend, having gained 95.5% over the past 12 months. It currently trades 1.2% above the 20-day simple moving average of $418.30 and 28.3% above the 200-day moving average of $330.10.

The technical setup remains favorable, with the 20-day moving average positioned above the 50-day moving average. A bullish golden cross formed in June 2025 remains in place. Momentum indicators suggest the rally is not overstretched, with the relative strength index at 53.18 indicating consolidation rather than excessive buying pressure.

Earnings And Analyst Outlook

The next major catalyst for the stock is the expected earnings report on July 16. Wall Street projects earnings per share of $3.69, up from $2.47 in the prior-year period. Revenue is anticipated to reach $39.76 billion, compared with $30.07 billion previously.

Analysts maintain a broadly bullish outlook on the company. Recent price targets include Barclays at $470, DA Davidson at $450, and Needham at $480. The consensus analyst forecast stands at $442.50. The stock currently trades at roughly 36.2 times earnings, reflecting a premium valuation supported by strong growth expectations.

Taiwan Semiconductor Manufacturing Co. Ltd. reported May 2026 revenue of 416.98 billion New Taiwan dollars, rising 30.1% from 320.52 billion New Taiwan dollars in the same month last year. The figure also represents a 1.5% increase from April's 410.73 billion New Taiwan dollars, extending the chipmaker's growth momentum driven by artificial intelligence and high-performance computing applications.

Consolidated revenue for the first five months of 2026 totaled 1.96 trillion New Taiwan dollars, an increase of 30.0% from 1.51 trillion New Taiwan dollars during the same period in 2025. The results underscore continued demand for advanced semiconductors used in data-intensive applications.

Financial Performance

Market Reaction and Technicals

Taiwan Semiconductor stock fell nearly 3% in premarket trading Wednesday as semiconductor stocks weakened alongside a broader risk-off move in U.S. equity futures. The decline appears driven by market sentiment rather than company-specific developments, with Nasdaq futures falling 1.42% and S&P 500 futures declining 0.90%.

Technically, the stock is trading about 0.4% below its 20-day simple moving average of $416.66 and below its 20-day exponential moving average of $418.89. However, the longer-term trend remains positive, with shares trading 5.6% above its 50-day moving average, 11.9% above its 100-day moving average, and 26.4% above its 200-day moving average.

Earnings Outlook

The next major catalyst is the estimated July 16, 2026 earnings report. Analysts expect earnings of $3.69 per share, up from $2.47 a year earlier, on revenue of $39.76 billion compared with $30.07 billion last year. Wall Street maintains a Buy consensus rating with an average price forecast of $442.50.