TSMC Stock Is Crushing Nvidia In 2026 — Here Are 3 ETFs That Cut Magnificent 7 Risk

Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) is pulling ahead of Nvidia Corp. (NASDAQ:NVDA) early in 2026, emerging as a standout winner in the global tech race while parts of the Magnificent Seven lose momentum.

Shares of the Taiwanese chipmaker giant jumped 4% during Thursday morning trading after the company delivered a bullish earnings report and outlook, pushing its year-to-date gain to roughly 10%. Meanwhile, Nvidia is down about 2% over the same period.

A Blowout Quarter For TSMC

TSMC’s fourth-quarter results crushed expectations across margins, profits, and forward guidance.

Gross margin hit 62.3%, well above the 60.6% estimate.

Management projected first-quarter gross margin between 63% and 65% and operating margin of 54% to 56%. Both ranges came in far above consensus.

Earnings per share came in at $3.09, far surpassing Street’s estimates of $2.90. Revenue totaled $33.1 billion, the highest on record and above estimates of $33 billion.

Revenue guidance for the first quarter of 2026 landed between $34.6 billion and $35.8 billion, topping estimates near $33.2 billion.

TSMC also signaled aggressive long-term expansion. The company said capital spending will remain significantly higher over the next three years as it accelerates capacity buildouts in the U.S. and Taiwan.

Management also projected 2026 sales growth close to 30% in US dollar terms and said a long-term gross margin above 56% is achievable.

Why This Matters Beyond One Stock

The implications extend far beyond TSMC itself. For years, the Magnificent Seven have dominated index performance, leaving many portfolios heavily concentrated in a handful of U.S. mega-cap names.

As that leadership shows signs of fatigue in early 2026, investors are beginning to look elsewhere — particularly toward global and non-U.S. exposures.

That shift has quietly boosted demand for ETFs with meaningful allocations to TSMC, offering a way to reduce Magnificent Seven concentration without abandoning technology exposure altogether.

Three funds stand out for their significant weighting in the chipmaker, each with roughly 16% exposure:

• Global X Emerging Markets ex-China ETF (NYSE:EEM)
• National Security Emerging Markets Index ETF (NYSE:NSI)
• SP Funds S&P World ex-US ETF (NYSE:SPWO)

For now, the message from early 2026 is clear. Chip leadership is no longer a one-stock story.

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