TSMC Posts Strong Results and Forecasts Higher Q4 Revenue

Taiwan Semiconductor Manufacturing Co. (TSMC) reported a sharp rise in third-quarter revenue and profit, while forecasting higher revenue for the final quarter of 2026. Its U.S.-listed shares fell during Thursday trading despite the results, as broader pressure on AI-related stocks and concerns about some consumer markets were cited as possible factors, without a single confirmed explanation for the decline. Revenue for the quarter ended September 30 reached about US$46.7 billion, up 50.9% from a year earlier. Net income rose 68.7% to about NT$763.1 billion. The results included revenue growth in both Taiwanese dollars and U.S. dollars; the company’s reported U.S.-dollar total was about US$46.7 billion. TSMC forecast fourth-quarter revenue of US$52.3 billion to US$54.3 billion, above its third-quarter U.S.-dollar revenue. The company also projected a gross margin of 65% to 67% and an operating margin of 56.5% to 58.5% for the quarter, according to the reported guidance. High-performance computing, a segment that includes demand for AI-related chips, accounted for 68% of third-quarter revenue. Advanced technologies of 7 nanometers and below made up 79% of wafer revenue. The...