Taiwan Semiconductor (TSM) reports third-quarter earnings on Oct. 15, one of only four updates a year from one of the world's most important chipmakers. In three of the last four reports, the stock declined or was weak right after the release despite beating EPS estimates, but it has typically performed well a month or two later. Wall Street expects revenue growth of 47% in Q3 and 54% in Q4, the fastest in the past three years, while the stock trades at about 28 times forward earnings. Nvidia expects data center capital expenditures from the big five AI hyperscalers to rise from nearly $800 billion in 2026 to $1.3 trillion in 2027. TSMC is also raising foundry prices by 5% to 10% starting in 2027, and the article concludes the stock is a great buy because of its leadership in chip fabrication.
Summary written by Upside AI from the original article. Read the source for full details.
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