TSMC Q3 Revenue Tops Its Own Guidance and the 19-Analyst Forecast

TSMC's (TSM) shares fell 2% to $472.53 despite Citi raising its price target to NT$4,000 and maintaining a Buy rating. August revenue rose 53.3% YoY, with Q3 guidance at $44.6B-$45.8B. Shares trade 26.43% above GF Value estimate.

GlobalFoundries (GFS) shares rose 4% after announcing a $2B, 5-year deal with TSMC (TSM) to manufacture silicon interposers in the U.S. The agreement involves expanding GFS's New York facility to support TSMC's advanced packaging ecosystem, with production starting in early 2028. The partnership aims to address semiconductor supply chain bottlenecks and strengthen U.S. manufacturing capabilities.

Elon Musk clarified that his companies will build and operate Terafab, an AI chip complex in Texas, with TSMC (TSM) potentially subleasing part of it. This decision impacts Tesla (TSLA), SpaceX, and Intel, as it reduces speculation about TSMC taking over the project. Musk's statement follows discussions with TSMC about possible cooperation, which had sparked uncertainty about Intel's role.

GlobalFoundries (GFS) signed a $2B deal with TSMC to produce silicon interposers in New York, with production starting in early 2028. The multi-year agreement aims to expand GFS's role in advanced AI packaging.

TSMC reported record Q3 revenue of T$1.49 trillion ($46.71B), up 50% YoY, beating market forecasts. The company, a major supplier to Nvidia and Apple, did not provide forward guidance. TSMC's shares fell 1.35% ahead of the data release, despite a 64.52% YTD gain. The company is expected to report a 64% YoY rise in Q3 net profit.

Samsung and TSMC shares fell despite strong earnings reports. Samsung forecasted a record quarterly profit of $107 billion, while TSMC reported a 50% revenue increase. Investors are concerned about sustainability due to rising borrowing costs and the debt-fueled AI chip boom, according to Bloomberg and market analyst Kim Seok-hwan.