# TSM's growth is powered majorly by the high-performance computing segment.

*semiconductor · news · 2026-05-07 · Seeking Alpha*

## Key points

- Gross margins at TSMC may face a peak headwind of up to 700 basis points from 2nm ramp and overseas fabs.
- Apple and Elon Musk's Terafab are exploring foundry partnerships with Intel and Samsung, not just TSMC.
- Despite its superior growth, TSMC trades at a 1-year forward PE discount to foundry and semiconductor peers.
- Analyst now expects approximately 32% year-over-year revenue growth for TSMC in FY2026, above management guidance.

**Companies:** Apple, Intel, Samsung, Terafab
**Countries:** Taiwan, United States, South Korea

[Read the full story on Seeking Alpha](https://seekingalpha.com/article/4899836-tsmc-stock-early-signs-of-formidable-foundry-competition-downgrade-hold)

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