TSMC (TSM) Stock Slips After Blowout May Sales — Should You Be Worried?

TLDR

• TSMC reported May 2026 revenue of NT$416.98 billion ($13.19 billion), up 30.1% year-over-year
• Revenue rose 1.5% from April, driven by strong AI chip demand
• First five months of 2026 revenue hit NT$1.96 trillion, up 30% year-over-year
• Despite the strong numbers, TSM stock fell roughly 2.2% during Taiwan trading
• Insider activity showed a net sell of $14 million over the past three months

Taiwan Semiconductor Manufacturing (TSM) posted May 2026 revenue of NT$416.98 billion, or roughly $13.19 billion. That’s a 30.1% jump from the same month last year and a 1.5% rise from April.

Taiwan Semiconductor Manufacturing Company Limited, TSM

Strong demand for AI chips continues to be the engine behind those numbers. TSMC is the go-to manufacturing partner for Nvidia and Apple, two of the biggest names driving that AI chip push.

Year-to-date, TSMC’s revenue through the first five months of 2026 came in at NT$1.96 trillion — up 30.0% from the same period in 2025.

Despite the strong print, TSM stock fell approximately 2.2% during trading in Taiwan on Wednesday. Profit-taking after a strong run appears to be the most likely explanation.

Back in April, TSMC had already guided for second-quarter revenue of $31.4 billion to $32.4 billion. The May numbers put that guidance well within reach.

A Closer Look at Valuation

TSMC carries a P/E ratio of 35.55x, which is a premium to its historical averages. That tells you the market is pricing in a lot of continued growth.

GuruFocus gives TSMC a GF Score of 94 out of 100. The company scores 10/10 for both profitability and growth, and 9/10 for financial strength. That’s a clean scorecard by any measure.

TSMC commands around 70% of the global contract chip foundry market. Its client list — Apple, Nvidia, AMD — reads like a who’s who of advanced semiconductor buyers.

Insider Activity Worth Watching

One item that stands out: insiders have been selling. Over the past three months, TSMC insiders recorded a net sell of $14 million, with no purchases reported in the same window.

That doesn’t override the strong revenue story, but it’s a data point investors tend to watch closely.

TSMC’s Piotroski F-Score sits at 8, which signals a very healthy balance sheet. The company’s market cap is approximately NT$2.22 trillion, or around $71.5 billion.

The company was founded in 1987 and has since built a near-irreplaceable position in global chip production.

TSMC’s second-quarter revenue guidance of $31.4 billion to $32.4 billion, issued in April, was set against a backdrop of global trade uncertainty and tariff concerns. The May figure suggests those headwinds have not slowed orders.

The first five months of 2026 at NT$1.96 trillion year-to-date keeps TSMC firmly on track.

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