TSMC shares rose 3% after Taiwan's Commercial Times reported the company is preparing to raise prices for its CoWoS AI chip packaging by up to 20%, a cost that would fall on customers such as Nvidia and AMD. According to supply-chain sources cited in the report, foundries and outside packagers are preparing CoWoS price increases of 10% to 20%, while equipment lead times have stretched to six to eight months from three to six. The hike comes after TSMC's record third quarter, when revenue of $46.7 billion topped the high end of its guidance and gross margin reached 66.4%, while advanced packaging was about 8% of revenue in 2025. Analysts expect TSMC's earnings per share to more than double from $10.65 in 2025 to $23.39 in 2027, and the stock trades at about 17x forward earnings, below its five-year average of 18x. TSMC has not confirmed the price increase, and its fourth-quarter report and 2027 guidance in mid-January are the next key test.
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TSMCsemiconductorsartificial intelligenceNvidia
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• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/27/2026 | 217.94 |
| Change that session | +0.90% |
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