TSMC Stock Growth Outpaces Nvidia Amid AI Boom

Taiwan Semiconductor Manufacturing Company outperformed Nvidia in stock growth during 2026, with its share price rising over 46% compared to Nvidia's 21%. As the world's largest semiconductor foundry, the company manufactures chips for a wide array of major technology firms, including Apple, Microsoft, Alphabet, and Amazon, in addition to Nvidia.

The company is leveraging the current boom in AI infrastructure to increase its pricing power, which has led to significant margin expansion. In the second quarter, the foundry reported revenue of $40.2 billion, representing a 33.7% increase year-over-year.

Management projects continued growth into the third quarter, estimating revenue will rise between 34% and 38% year-over-year. This puts projected third-quarter revenue in a range between $44.6 billion and $45.8 billion.