TSMBULLISH

TSM Gross Margin Analysis

67.7%

Higher than 62% of Technology sector peers

Updated 853h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after covering direct production costs, and at 67.7% TSM retains a large portion of each sales dollar as profit.

Sector Performance

62th percentile

TSM

67.7%

Sector Median

65.7%

Sector Avg

61.2%

Prior Period

66.2%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin is the share of revenue left after covering direct production costs, and at 67.7% TSM retains a large portion of each sales dollar as profit.

That level sits above the Technology sector median of 65.7%, placing TSM in the 61st percentile among its sector peers. The trend cannot be assessed because the data set shows only a single value — 67.7% — with no year-over-year or quarter-over-quarter change reported. A high margin relative to peers suggests strong pricing power or cost efficiency, which is generally favorable, but the absence of trend data leaves no evidence of whether this edge is improving or eroding. For an investor, the level supports moderate confidence in profitability, while the missing historical context introduces uncertainty about durability. This metric aligns with the BULLISH overall verdict, as a gross margin above the sector median is consistent with a positive outlook.

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 65.7%, placing it in the 62th percentile.

Who are TSM's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: ASML (53.0%), AMD (52.8%), MRVL (52.1%), SMTC (52.0%), CAMT (50.1%).

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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.