TSMBULLISH

TSM Gross Margin Analysis

67.7%

Higher than 58% of Technology sector peers

Updated 9h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after subtracting the direct costs of production—here, 67.7% of each sales dollar remains after covering manufacturing costs.

Sector Performance

58th percentile

TSM

67.7%

Sector Median

66.3%

Sector Avg

62.2%

Prior Period

66.2%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin is the percentage of revenue left after subtracting the direct costs of production—here, 67.7% of each sales dollar remains after covering manufacturing costs.

That figure sits above the sector median of 66.2%, placing TSM at the 58th percentile among technology peers. The trend is N/A: both year-over-year change and quarter-over-quarter change are listed as N/A, so no direction can be determined from the available data. The combination of a margin above the sector median with an unknown trend implies a strong current cost position but an unverified path forward, adding uncertainty to the risk profile. This metric supports the overall BULLISH verdict because the margin level is above the typical peer, even though the absence of trend data tempers that confirmation. Investors should weigh the high margin as a positive signal, while recognizing that momentum is not measurable with the given information.

Frequently Asked Questions

What does the Gross Margin tell investors about TSM?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does TSM's Gross Margin compare to its sector?

TSM's Gross Margin of 67.7% compares to a Technology sector median of 66.3%, placing it in the 58th percentile.

Who are TSM's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: MDB (72.2%), NVDA (74.9%), CRWD (75.3%), ESTC (75.4%), CRM (76.9%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.