The world’s largest contract chip maker saw revenue climb 51% to NT$1.494 trillion, comfortably clearing the upper end of its US$45.8 billion forecast. Despite this robust performance, the stock’s momentum cooled in the third quarter with a 2.9% gain, stifled by broader market anxieties over inflation, bond yields, and the long-term sustainability of massive artificial-intelligence capital expenditures. Even with this recent plateau, shares remain up more than 60% year-to-date.
In section Market Quotes
TSMC Braces for Strong Q3 Results Amid AI Investment Surge
A 62% surge in net profit is expected for Taiwan Semiconductor Manufacturing Co. when it reports third-quarter earnings this Thursday. Analysts project the firm’s net profit will reach NT$731.77 billion, or US$22.90 billion, fueled by revenue that outperformed the company’s own guidance by crossing the US$46 billion threshold.
Investors are now turning their attention to the company’s expansion strategy and long-term trajectory. Management is expected to address ongoing U.S. projects, including the Arizona site and potential collaborations on the Terafab initiative in Texas. Beyond immediate operations, analysts from Citi suggest the company could sustain revenue growth exceeding 40% through 2027, provided that demand for AI compute and emerging technologies like co-packaged optics remains high.
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