TSMC reported third-quarter revenue up 50.9% to $46.7 billion, above the $45.7 billion consensus, with gross margin rising from 59.5% to 66.4% and adjusted earnings per share reaching $4.60 versus $4.46 expected. High-performance computing, mostly AI-related, made up 68% of revenue, and 3nm chips became its largest revenue source at 33%. Despite the strong results, TSMC shares fell 2.2% on Thursday afternoon after dropping more than 5% at one point, amid a broader AI-stock sell-off, with the VanEck Semiconductor ETF down 8.2% for the week and CoreWeave down 17.6%. CEO C.C. Wei warned that consumer and price-sensitive segments face challenges from rising component prices and macroeconomic uncertainty, while calling AI chip demand extremely robust.
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Original headline: TSMC Just Posted Record Profit for the Sixth Straight Quarter . Why Did the Stock Fall ?
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- TSMC Just Posted Record Profit for the Sixth Straight Quarter. Why Did the Stock Fall?
TSMC reported third-quarter revenue up 50.9% to $46.7 billion, above the $45.7 billion consensus, with gross margin rising from 59.5% to 66.4% and adjusted EPS of $4.60 versus $4.46 expected. For the first time, 3nm chips were its largest revenue source at 33% of sales, and high-performance computing, mostly AI-related, made up 68%. CEO C.C. Wei described AI demand as very strong but warned that consumer and price-sensitive segments face pressure from rising component prices and macro uncertainty. Even so, TSMC shares fell 2.2% on Thursday afternoon and at one point more than 5%, amid a broader AI-stock sell-off in which CoreWeave dropped 17.6% and the VanEck Semiconductor ETF fell 8.2% over the week.
- TSMC Just Posted Record Profit for the Sixth Straight Quarter. Why Did the Stock Fall?
TSMC reported third-quarter revenue up 50.9% to $46.7 billion, above the $45.7 billion consensus, with gross margin rising to 66.4% from 59.5% and adjusted EPS of $4.60 versus $2.92 a year earlier, beating estimates of $4.46. Advanced chips at 7nm and below made up 79% of revenue, while high-performance computing, mostly AI-related, reached 68%. CEO C.C. Wei said AI demand is very strong and rising with agentic AI, but warned that consumer and price-sensitive segments are being challenged by higher component prices and macro uncertainty. Despite the beat, the stock fell 2.2% on the day and more than 5% at one point, amid an AI-stock sell-off that week in which the VanEck Semiconductor ETF was down 8.2%.
- 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 Posts a Sixth Straight Record Quarter, and Its Q4 Guide Says the AI Boom Isn’t Slowing. Here’s the Fuller Picture
TSMC posted net profit up 68.7% to NT$763.06 billion, above the LSEG estimate, on revenue of US$46.72 billion, its sixth straight record quarter. It guided fourth-quarter revenue to US$52.3–54.3 billion, about 14% above the third quarter at the midpoint, and CEO C.C. Wei expects 2026 revenue to grow around 44% in U.S. dollar terms. Gross margin slipped to 66.4% from 67.7%, and the 65%–67% fourth-quarter guide does not promise a rebound. The results came amid a chip selloff that pushed the Taiex down 3.41%, with the stock at 19.48x forward earnings, near its 19.32x average. The article names the fourth-quarter gross margin, with a print below 65%, as the key test.
- 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.
- Taiwan Semiconductor's (TSM) Profit Rose 69% Last Quarter. Is the Stock Still Cheap?
TSMC (TSM) closed at $422.25 on October 15 and has returned 16.21% over six months. The latest quarter was the strongest in the company's history, with revenue of $46.72 billion above management's earlier guidance and net profit up 68.7%, faster than revenue. Gross margin reached 66.4% while the company started mass production on its newest 2nm process, a stage that typically weighs on margins. The risks are a concentrated customer base, spending plans set more than a year ahead, and advanced plants located in Taiwan, whose political status is disputed. The shares trade at 21.41x expected earnings for next year versus 33.67x reported earnings.
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