Taiwan Semiconductor (TSM) reported record third-quarter earnings of $4.60 per share, beating the Zacks Consensus Estimate of $4.45 and up 57% from $2.92 a year earlier, while revenue rose 41% to $46.72 billion, above the $45.61 billion expected. Gross margin was 66.4% and operating margin 58.7%, with advanced technologies making up 79% of wafer revenue on demand from Nvidia, Apple and AMD, and the company has now beaten earnings expectations for 24 consecutive quarters. For the fourth quarter, it guided to revenue of $52.3–$54.3 billion, above the roughly $50.22 billion Wall Street expected, and gross margin of 65%–67%. Shares have fallen 9% this month but are still up 36% year to date; at around $412 a share, TSM trades at 25X forward earnings, a modest premium to the Zacks Computer and Technology sector's 23X. The article argues this valuation still looks reasonable, making TSM worth considering after the recent pullback.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Related tickers and likely impact
AAPL
▲ Likely positiveApple Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Technology Hardware, Storage & Peripherals |
| Market cap | $5.0T |
| Close on 10/16/2026 | 343.47 |
| Change that session | +0.43% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Apple stock is at a record high — but is it warranted given slowing iPhone 18 demand?
Apple (AAPL) shares are at a record high, and its market cap recently passed $5 trillion for the first time on expectations for iPhone 18 demand. Jefferies analyst Edison Lee argues that optimism may be running ahead of the data, pointing to media reports that Apple cut orders for iPhone 18 Pro and Pro Max by 10%–15%. His tracking shows weakening demand: resale prices for the 18 Pro have slipped to discounts, and lead times in China have disappeared, compared with premiums and longer waits a year earlier. He says the foldable iPhone Duo's pre-order lead time exceeded 90 days, but it has since fallen across all 5 major markets he tracks, and he estimates 6–7 million units of shipments in 2026, in line with market expectations.
- Apple stock staged a rally to $5T "that no one liked": Melius
Melius Research says Apple's rally to a $5 trillion market value has been the 'most disliked rally in history,' but believes gains can continue despite hedge fund concerns about memory costs, services headwinds and high valuation. The stock trades at 36 times next-12-month EPS and is up 26% year to date, outperforming Amazon, Alphabet, Meta, Tesla and Nvidia. Melius reiterated its Buy rating and $370 price target ahead of earnings on Nov. 2, seeing room for the target to move higher. It highlighted new CEO John Ternus's push to broaden the product lineup, including a HomeView device with a robotic arm in 2027, camera-equipped AirPods and a redesigned iPhone for the device's 20th anniversary.
- Apple extends iPhone Duo delivery, disappointing eager customers
- Apple Stock Escaped the AI Downturn. Now It Faces a 27% Plunge, Says Analyst.
- Analyst says iPhone 18 demand weakness is "intensifying"
Jefferies analyst Edison Lee says demand for the iPhone 18 Pro and Pro Max is weakening further, with lead times in China falling to zero days versus six and 25 days for last year's models. Resale prices for all Pro variants have moved to discounts since Sept. 29, while last year's model traded at 1% to 6% premiums, and PDD has cut prices on the Pro and Pro Max by 6% and 9% since Oct. 16. Jefferies says Apple has cut orders for some components, including 2nm chips, by 10% to 15%, though some suppliers indicate the net assembly cut so far is only 2 million units. The firm links strong China sell-through to discounted sales of iPhone 17 Pro inventory.
- Treasuries Rallied as Tech Slid , and the Crowded Bet Against Bonds Felt It
Last week, the US 10-year Treasury yield fell about 17 basis points while the Nasdaq 100 dropped 5.5%, the largest same-week declines in both since the April 2025 tariff turmoil, according to Bloomberg. The move caught investors who had heavily bet on a deeper bond slump after 10-year yields climbed for seven months to their highest levels in more than two decades. A sell-off in AI-linked tech stocks triggered the rally, and trend-following commodity trading advisers exited their bearish Treasury futures positions. Traders had at one point priced about a 50% chance of a Fed rate hike in October and still expect one increase by year-end and another in 2027. Meanwhile, investment-grade companies, led by megacap technology, have sold about $1.7 trillion of bonds this year, up 29% from a year earlier.
Related markets
Latest news
- Why Meta's Q3 earnings could be a little hard to interpret
Meta is reporting its third-quarter earnings after the market closes Wednesday, and Yahoo Finance's Brian Sozzi says the report will be hard to interpret. Recent good news on Meta's AI products, including new models and an AI agent, may not appear directly in the results but will likely be discussed on the earnings call. The key uncertainty is how investors will react if Meta raises its capex outlook again: it could be seen as fueling those products, or as overspending on offerings not yet reflected in financials. Sozzi expects the market to give Meta the benefit of the doubt on higher capex, as long as the increase does not shock investors.
- Zerohash rolls out a new tool to move crypto without copying wallet addresses
Zerohash launched AUTH, a service that lets users move crypto, stablecoins and blockchain-based stock tokens between linked exchange accounts or self-custody wallets without copying wallet addresses or choosing a blockchain network. To transfer, users pick an account in an app that offers AUTH, sign in and approve the move, while the service handles routing and settlement and each app sets which assets and transfer types it allows. AUTH supports more than 600 connections, including Coinbase, Robinhood, Gemini, MetaMask and Phantom, with Coinbase, Robinhood and Gemini live and Kraken in beta. The launch comes as Zerohash's application for a national trust bank charter, returned by the Office of the Comptroller of the Currency in July, remains pending after a narrower refiling on Aug. 18.
- 2 charts show why Wall Street is right to worry about tech stocks
Rising cost of capital could affect the financial statements of hyperscalers such as Oracle (ORCL) and Google (GOOG, GOOGL) in 2027, as they need fresh debt to fund AI infrastructure and free cash flow may turn negative. JPMorgan strategist Mislav Matejka forecasts hyperscaler free cash flow will turn negative in 2027, implying credit markets will drive more of the AI build-out. Consensus estimates for 2027 capital expenditures are already rising from levels experts believe are too low. Morgan Stanley sees total 2027 capex among hyperscalers reaching $1.6 trillion, up from $978 billion estimated for this year. Dan Ives of Yorkville expects capex to reach the trillions and over 1,000 datacenters to be built in the next few years.
- Update on loan rate cuts as of the evening of Oct 19: MB, VietinBank, SHB, OCB join in
SHB, MB, VietinBank and OCB have announced loan rate cuts, following Agribank, Vietcombank, BIDV, ACB, LPBank and VietBank, with typical reductions of 1.5-2% per year. MB is cutting 1.5% per year for five priority sectors, to rates from 7.9% per year, and up to 2% in some cases; VietinBank is cutting up to 2% per year, while OCB offers up to 2.25% per year on some medium- and long-term loans for OCB Priority Banking members. SHB is cutting 1.5-2% per year for businesses and households and offers rates from 5.5% per year for lecturers and students at some universities. Vietcombank commits to cutting at least 2% through year-end, BIDV applies rates from 6% per year on short-term VND loans from 15/10/2026, and VietBank runs a VND 3,000 billion package. Specific benefits depend on borrower type, loan purpose, term and program conditions, following directives from the Government and the State Bank of Vietnam.
- Nvidia wins CPU business from Modal, previously exclusive to AMD and Intel
Modal, a San Francisco-based AI cloud startup that previously ran its AI agent workloads only on Intel and AMD processors, will begin using Nvidia's new Vera CPU. Early tests showed the Nvidia chip doubled work capacity for AI agents, and Modal plans to run it alongside Intel and AMD chips, assigning each task to the most efficient hardware, though integration requires substantial software changes. Modal recently raised $750 million in a round led by Accel at a $15.75 billion valuation and expects $1 billion in sales over the next year, with usage tripled and revenue up more than 15 times year-over-year. Nvidia projects at least $20 billion in Vera chip revenue this fiscal year in a market it estimates at about $200 billion, and says OpenAI, Anthropic, Oracle and Perplexity also plan to use the chips.
- America's EV Plans Have Died
Billions of dollars went into EV factories, dealerships and marketing after President Biden set a goal for 50% of new US car sales to be zero-emission by 2030, but EV sales have since fallen sharply. US EV sales dropped 30.7% in the first nine months of 2026, after the $7,500 tax credit expired on September 30 last year, and gas prices near $4.50 per gallon have done little to lift them. According to Kelley Blue Book, the average transaction price of a new EV was $54,754 in August, above the $50,089 average for all new cars. Ford's EV sales fell 80.2% to 6,047 in the third quarter, and it has no new EV planned until its Fathom launches next year, while Tesla holds over 50% of the market and no other major automaker has even 10%. The article says EVs could recover if gas prices reach $5 and stay there for months, but that is uncertain.
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.