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TSMC projected to reach record 2026 earnings on 3nm and 2nm AI chip demand
Monday, February 9, 2026 at 01:01 PM
TSMC is projected to achieve record earnings by 2026, with an EPS exceeding NT$100, driven by sustained AI chip orders for 3nm and 2nm nodes. Major customers including Nvidia, AMD, Amazon, and Google are fueling this demand. The company anticipates revenue growth of nearly 30% in USD terms for 2026, supported by an upward revision of the long-term AI accelerator market outlook.
Context
TSMC is projected to reach record annual profits, with analysts forecasting earnings per share to hit 100 TWD as AI and high-performance computing demand surges. The foundry has significantly revised its five-year compound annual growth rate for AI accelerator revenue upward to between 54% and 59%, up from a previous estimate of 45%. Driven by increased orders for advanced 3nm and upcoming 2nm nodes, TSMC expects 2026 revenue to grow by approximately 30% year-over-year, significantly outpacing the broader semiconductor industry.
This momentum is fueled by aggressive product cycles from Nvidia, which is sampling its next-generation Vera Rubin platform, and AMD, which is supplying Instinct MI450 GPUs to Meta. Cloud giants including Amazon and Google are also ramping up custom AI silicon production. By 2025, AI accelerators are expected to represent between 17% and 19% of TSMC’s total revenue. The company’s dominance in leading-edge process technology ensures it remains the primary beneficiary as customers transition to more efficient, high-density chips for large-scale AI training and inference.
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