Moody's Ratings upgraded Taiwan Semiconductor Manufacturing Company's (TSMC) outlook to positive from stable on August 28, 2026. The agency affirmed TSMC's Aa3 issuer rating.
Structural growth in artificial intelligence and cloud computing drove the outlook change. Moody's expects TSMC's technological leadership to capture surging demand for advanced chips.
Revenue is projected to grow between 30% and 40% annually. This growth is expected over the next 12 to 18 months.
Adjusted EBITDA margins are forecast to reach approximately 75%. This represents an increase from the 72% margin recorded in 2025. Higher capacity utilization and productivity gains will support these margin improvements.