May 7 analysis highlights increasing long-term competition for TSMC. Major customers like Apple are exploring foundry alternatives with Intel and Samsung.
Gross margins face temporary but significant pressure from the 2-nanometer technology ramp-up. Higher costs from new overseas fabrication plants also impact margins.
TSMC shares reached a 52-week high on May 6. This rally followed a sector-wide boost from AMD’s blowout Q1 2026 earnings.
AMD confirmed strong demand for AI-related chips manufactured by TSMC. The market balances TSMC’s AI dominance against emerging competitive threats.