TSMC Posts Record Quarterly Profit on AI Chip Demand, but Shares Slip
TSMC reported third-quarter net income of NT$763.06 billion, up nearly 69% from a year earlier, while revenue rose 51% in New Taiwan dollars to NT$1.49 trillion. The chipmaker guided for fourth-quarter revenue above analyst expectations and reaffirmed 2026 capital spending of $60 billion to $64 billion. Its shares fell 3% to 5% as a broader semiconductor selloff and concerns about margins and expansion costs overshadowed the results.
TSMC's third-quarter net income reached NT$763.06 billion, almost 69% higher year over year, while revenue rose 51% in New Taiwan dollars to NT$1.49 trillion. U.S. dollar revenue was $46.72 billion, up 41.2%. Advanced nodes supplied 79% of wafer revenue, led by 3-nanometer and 5-nanometer output, with 2-nanometer production starting to add meaningfully.
The company projected fourth-quarter revenue of $52.3 billion to $54.3 billion, topping analyst estimates near $50.2 billion, and repeated a 2026 capital budget of $60 billion to $64 billion. It also expects 2026 revenue growth above 40%. Despite this, shares dropped 3% to 5% amid semiconductor weakness and cost concerns.
TSMC's record results and expansion may reinforce AI infrastructure growth, affecting cloud providers, device makers, and consumers who could see new AI services. Its capital spending could shape semiconductor supply chains and regional manufacturing employment. Investors may stay sensitive to margins and costs, while broader access to advanced chips could influence how quickly AI tools reach sectors such as healthcare, education, and transport.