Woofun AI reports that TSMC’s second-quarter revenue reached the upper limit of its guidance range, slightly surpassing market expectations and confirming sustained strength in advanced process and AI-related demand. Bernstein maintains an Outperform rating with a target price of NT$2,780 for Taiwan-listed shares, implying approximately 14% upside from the July 13 close.

The firm forecasts capital expenditures of $56 billion in 2026 and $68 billion in 2027, with CoWoS monthly capacity expanding to 135,000 wafers by late 2026 and 195,000 by late 2027. Gross margins are projected to rise from 60% to 65% in 2026, driving EPS growth of roughly 50% to NT$102. While capacity constraints have increased customer interest in Samsung Foundry and Intel Foundry, Bernstein asserts these shifts reflect TSMC’s supply limits rather than competitive weakness, noting TSMC remains at least one generation ahead in technology nodes.