TSMC's Q2 Gross Margin Reaches 67.7%, Citi Says Profitability Outlook Remains Resilient

According to Citi analysts in a research report, TSMC's gross margin outlook remains resilient, with Q2 2026 margins reaching 67.7% and advanced nodes accounting for 77% of wafer revenue. The report noted that 2-nanometer chips contributed revenue for the first time, reinforcing the company's leading profitability position in the industry.

Citi added that management emphasized AI demand has become significantly stronger than previously expected, with CPU requirements expanding beyond accelerators. The company sees continued growth in AI-driven demand.