Taiwan Semiconductor Manufacturing Company (TSMC) and Super Micro Computer (SMCI) both reported blowout earnings, underscoring the relentless demand for advanced AI chips. On August 10, 2026, TSMC announced July revenue of NT$467.58 billion ($14.5 billion), a 44.7% year-over-year surge. The first seven months of 2026 brought in NT$2.87 trillion, up 37% from 2025. This followed a second quarter where net profit jumped 77% to $22 billion, smashing analyst estimates.
For the third quarter, TSMC guided revenue between $44.6 billion and $45.8 billion with gross margins of 65%–67%, signaling continued momentum. Needham analyst Charles Shi raised his price target to $530, forecasting 40% revenue growth in 2027 and 24% in 2028, fueled by AI chip orders. TSM stock is up 38.8% year-to-date, with a consensus Strong Buy and average analyst target of $525, implying ~25% upside.
On the same day, Super Micro Computer pre-announced a record backlog exceeding $60 billion and nearly doubled its gross margin guidance to 15%–17%. The company is set to report fiscal Q4 earnings on August 11, with Wall Street expecting EPS of $0.92 and revenue of $11.60 billion—both roughly double year-over-year. Options markets are pricing a 16%–19% post-earnings swing, reflecting deep uncertainty. Analysts are split: Rosenblatt and Needham raised targets, while Mizuho and Wedbush cut theirs. The average price target sits at $39.21, roughly 25%–30% above current levels. SMCI’s huge $60 billion backlog highlights the insatiable hunger for AI server and rack-scale systems, which rely heavily on Nvidia chips.
These results cement TSMC and SMCI as cornerstones of the AI infrastructure boom—a trend that also underpins the growing intersection of AI and blockchain technologies.
