In the first quarter of 2026, TSMC reported an after-tax net profit of NT$572.48 billion, representing a significant year-on-year surge of 58.3%. Both its gross profit margin and operating margin soared to unprecedented levels, underscoring its exceptional financial performance. Following the announcement of these earnings, HSBC Securities, within a mere two-day span, twice revised TSMC's target share price upwards to NT$2,800, signaling the onset of a fresh wave of target price adjustments across the market. However, the crux of the earnings call centered on a more profound inquiry: How can TSMC, as the preeminent provider of foundry services, sustain its vanguard position in the burgeoning era of artificial intelligence?
