TSMC shares are up about 39% year to date as of Oct. 15, 2026, versus about 13% for the S&P 500, after the chipmaker reported record third-quarter revenue of $46.7 billion, up 41% from a year earlier. High-performance computing, which includes AI data center chips, made 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 demand for AI chips is still far above TSMC's supply capability. The company is planning cautiously for 2027 amid macroeconomic uncertainty, and rising component prices could weigh on its smartphone business, which made up 21% of third-quarter revenue. The article argues the stock trades at about 19 times analysts' 2027 earnings estimates, while earnings are expected to grow 38% a year, making it an attractive valuation.
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