Taiwan Semiconductor Manufacturing shares are up about 39% year-to-date as of October 15, 2026, versus about 13% for the S&P 500. Third-quarter revenue rose 41% year over year to $46.7 billion, with high-performance computing making up 68% of sales. Management expects fourth-quarter revenue of $52.3 billion to $54.3 billion, about 58% growth at the midpoint, and Wei said AI chip demand is still far above TSMC's supply capability. The article also flags risks: rising component prices could pressure smartphone demand (21% of third-quarter revenue), and TSMC is planning cautiously for 2027. The stock trades at about 19 times analysts' 2027 earnings estimates, while Wall Street expects earnings to grow 38% annually over the next several years.
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