TSMC reported Q3 earnings up 58% on 41% higher revenue after its October 15 release, as demand for AI-related chips remained strong. 3-nanometer shipments made up 33% of total wafer revenue, up from 23% a year earlier, while 2-nanometer chips accounted for 8%, up from 3% in the second quarter. Q4 earnings estimates have risen about 12% since the release, and revenue is projected to grow 41% in 2026 and another 33% next year, reaching $229 billion. The stock is about 12% below its October 5 records and trades at 19.5X forward earnings, in line with its 10-year median. The company holds about 60% of the foundry market and 90% of advanced chip manufacturing, and is expanding in the U.S. and Japan to address geopolitical risks.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
TSMCsemiconductorsearningsartificial intelligenceNVDA
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▲ Likely positiveNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/26/2026 | 215.98 |
| Change that session | +2.38% |
AAPL
• NeutralApple Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Technology Hardware, Storage & Peripherals |
| Market cap | $5.1T |
| Close on 10/26/2026 | 343.98 |
| Change that session | -1.08% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Taiwan Semiconductor (TSMC) Posted Record Profit and the Stock Still Fell. Here's What the Market Is Worried About.
TSMC reported record third-quarter results on Oct. 15, with revenue up 50% and net profit up 69%, marking its sixth straight quarter of record profit. Yet the stock slipped after the report and is still down 7% over the past month, after rising 39% year to date beforehand. Gross margin of 66.4% matched guidance of 65%–67% but fell from 67.7% in the second quarter as 2nm ramp-up and overseas fab expansion weighed, while capex is set to rise 47%–56% from 2025 and the company kept its target at $60 billion to $64 billion. Concerns include a possible AI slowdown that could cool HPC growth if hyperscalers such as Amazon and Microsoft rein in AI spending. TSMC raised its full-year revenue growth outlook to 44% in USD terms, its third guidance boost in 2026, and analysts expect 2025–2028 revenue and EPS CAGRs of 36% and 42%, with the stock trading at 16 times next year's earnings.
- TSMC Says AI Chip Demand Is Still Far Above What It Can Supply. That's Why I'd Buy Nvidia Stock.
TSMC reported third-quarter revenue of $46.7 billion, above the top of its $44.6–45.8 billion forecast range, with high-performance computing (including AI chips) making up 68% of total revenue. It guided fourth-quarter revenue to $52.3–54.3 billion and now sees 2026 revenue growing about 44% in U.S. dollars. Chairman and CEO C.C. Wei said AI chip demand is still far above supply and that there was no sign of slowdown. Meanwhile, Nvidia shares fell about 9% from their October 6 record close, ending October 15 at $217.23. The author argues the gap between TSMC's results and Nvidia's share price makes the stock worth buying, at about 14 times expected earnings versus about 19 times for TSMC, while advising keeping the position small given its volatility.
- Taiwan chip giant TSMC says net profit hit record in third quarter
TSMC, the world's largest contract chipmaker, reported third-quarter net profit surged 68.7% year on year to a record, driven by strong global demand for AI hardware. It marked the sixth straight quarterly record, and the company makes chips used in Nvidia's AI data center processors. Net profit for July to September reached NT$763.1 billion (€23.6bn), beating analyst estimates of NT$739.5 billion (€22.9bn) and topping the previous record of NT$706.6 billion (€21.9bn) set in April–June 2026. Revenue rose 50.9% to NT$1.5 trillion (€46.4bn). Shares fell 2.2% ahead of the earnings report and remained down after the release.
- TSMC posts record profit for a sixth straight quarter, beating estimates on AI boom
Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, reported a record third-quarter net profit that beat analyst estimates, driven by strong global demand for AI chips. Revenue reached NT$1.49 trillion (about $46.36 billion), above the NT$1.47 trillion expected, while net income hit NT$763.1 billion versus NT$746.34 billion forecast, up 68.7% from a year earlier. September revenue rose 54.6% year on year to NT$511.86 billion. In July, TSMC outlined plans for a total investment of $265 billion in Arizona and is reportedly weighing a possible investment in Texas.
- TSMC Revenue Growth Accelerated Faster Than Expected Last Quarter. Here's Why It's My Top AI Chip Stock to Buy.
TSMC's September sales reached NT512 billion, up 55% year over year, and third-quarter sales hit NT1.49 trillion, up 51%. At 32 NTD to USD, Q3 revenue is about $46.7 billion, up 41% from a year earlier and accelerating from 34% growth in Q2, above both analysts' expectations and the company's own forecast of $44.6 to $45.8 billion. The article attributes the growth to strong AI chip demand, a faster ramp of 2nm production, price increases, and expanded capacity, including new facilities in Arizona. It notes the stock trades at 27 times earnings, while management's target is 25% average annualized sales growth for 2024 to 2029, a goal it is well ahead of.
- Taiwan Semiconductor Q3 Earnings & Revenues Top Estimates, Margins Up
TSMC reported third-quarter 2026 earnings of $4.60 per ADR, up 68.7% year over year and beating the Zacks Consensus Estimate by 3.4%, while revenue rose 41.2% to $46.72 billion, 2.4% above estimates. Revenue exceeded management’s previous guidance of $44.6–45.8 billion, with advanced process technologies making up 79% of wafer revenues and the 2-nanometer process rising to 8% from 3%. Gross margin was 66.4% and operating margin 58.7%, both up year over year but down sequentially as the 2-nanometer ramp-up progressed. Management expects full-year 2026 revenue to grow about 44% in U.S. dollar terms, and forecasts fourth-quarter revenue of $52.3–54.3 billion with gross margin of 65–67%.
Related markets
Latest news
- Bitcoin Mining Firm Luxor Raises $16 Million to Scale Its AI Compute Push
Luxor Technology, a company built on Bitcoin mining, raised $16 million in a strategic round led by CMT Digital, with participation from Canaan, MicroBT, Halo, Steelhead and angel investors. The raise follows the September launch of Luxor AI, which extends its energy, hardware, software and trading stack into AI and high-performance computing. The company said its hardware desk has traded $1 billion of mining ASICs, its energy arm serves more than 75 megawatts of load across two U.S. grid regions, and its cloud platform processed 1.8 million workloads so far this year as of September. Proceeds will go toward scaling the cloud platform, working capital for the AI hardware business, compute-derivatives trading and hiring. CEO and co-founder Nick Hansen said compute markets are converging, as the miners, power sites and capital that served digital mining now power AI.
- Luxor raises $16M from CMT Digital amid AI-Bitcoin miner convergence
Luxor Technology raised $16 million in a strategic round led by CMT Digital, with participation from Canaan, MicroBT, Halo, Steelhead and angel investors. The company plans to use the proceeds to scale its agentic cloud platform, grow its AI hardware business, expand compute derivatives trading and hire more staff. Luxor has expanded its hardware business to source GPUs and AI servers as global chip supply chains become increasingly hard to navigate. It raised $5 million in a Series A round led by NYDIG in June 2021, and earlier seed investors included Celsius, Valour and Bitnomial.
- Morning Minute: Tokenized Stock Battle Looms Over Robinhood's Earnings Call
A full-page Wall Street Journal ad paid for by Common Sense Leadership Fund warned public company CEOs that crypto is coming for their shares, listing eight risks and giving companies 30 days to opt out. The number of companies objecting to tokenizing their shares on the OKX-ICE venue rose from nine to 22 in about eight days, equal to 35% of the 63 companies the venue planned to list. Robinhood reports third-quarter results after the bell, and its Robinhood Chain, which launched its public mainnet, generated roughly $51 million in revenue in its debut quarter, more than Ethereum's $41 million. The chain processed about $65 billion in DEX volume, of which $13.7 billion was tokenized equities.
- Nvidia to invest $3 billion in Meta, expand partnership on Muse
Nvidia said it will invest $3 billion in Meta after the company announced plans to raise up to $95 billion to fund its AI infrastructure build-out. The two companies will also expand their work on Muse and the Muse family of models to improve inference and training performance. Meta's initial raise of $35 billion includes about $22.5 billion in Class A common stock and $12.5 billion in Series A mandatory convertible preferred stock. Nvidia, AMD and Broadcom also expressed interest in buying up to $5 billion in aggregate of those shares.
- Freeport beats Q3 estimates on higher copper, gold prices
Freeport-McMoRan reported third-quarter adjusted earnings of $0.88 per share, beating estimates of $0.80, with revenue up 8% to $7.55 billion, helped by higher commodity prices. Copper and molybdenum prices averaged $6.54 and $32.46 per pound, while copper sales fell to 749 million pounds from 977 million a year earlier due to lower operating rates in Indonesia during the ramp-up of the Grasberg Block Cave mine. Gold sales of 105 thousand ounces fell well short of the earlier estimate of 160 thousand ounces, mainly due to timing of refined gold sales in Indonesia. For full-year 2026, Freeport expects sales of about 3.0 billion pounds of copper, 649 thousand ounces of gold and 93 million pounds of molybdenum, with operating cash flow of about $8.5 billion. Shares rose 0.6% following the results.
- Jim Cramer's top 10 things to watch in the stock market Tuesday
Broadcom has finalized $63 billion in financing to help Anthropic buy its AI chips and networking gear. Meta increased the size of its Class A secondary offering to $25 billion from $22.5 billion, priced at $625 a share, while Nvidia said it is investing $3 billion in that offering. Celestica rose more than 12% after reporting a large earnings beat and issuing 2027 guidance for profits and sales well ahead of expectations. Coca-Cola raised its full-year earnings growth outlook to at least 11%, from 9% to 10% previously, and UPS raised full-year guidance, with shares up 2%. Whirlpool lowered full-year guidance after revenue and operating income came in weaker than expected, and shares fell 7%.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.