TSMC's AI-fuelled profit streak hits sixth straight record in 3Q26, but 2nm expansion weighs on margins

Taiwan Semiconductor Manufacturing Company Limited reported Q3 2026 earnings. Sales rose to TWD 1,494,243 million from TWD 989,918 million year-over-year. Net income increased to TWD 763,064 million from TWD 452,302 million. Basic EPS from continuing operations was TWD 29.43, up from TWD 17.44.

Nvidia (NVDA) and other chip stocks fell as inflation data and debt concerns weighed on the sector. NVDA dropped 2%, AMD 4%, Sandisk (SNDK) 6%, Micron (MU) 4%, and TSMC (TSM) 4%. CoreWeave (CRWV), backed by NVDA, fell 7% amid debt and rate worries. September's wholesale inflation rose at its highest pace since 2022.

TSMC's shares dropped 4% despite reporting a 69% profit increase and 51% revenue growth, driven by strong AI chip demand. The company expects $54.3B in Q3 sales, exceeding estimates. TSMC plans significant capital expenditures through 2028 to support customer growth, including potential expansion in Texas. The stock is up 41% year-to-date.

Taiwan Semiconductor (TSM) reported record Q3 profit of NT$763.1B ($46.36B), beating estimates, driven by AI chip demand. Revenue was NT$1.49T, up 68.7% YoY. Q4 guidance forecasts $52.3B-$54.3B revenue. TSM shares rose 41% in 12 months.

Taiwan Semiconductor (TSM) fell 3% despite reporting a record quarterly profit, with revenue and net income up year-over-year. Intel (INTC) dropped 4% and AMD (AMD) slid 3%. The iShares Semiconductor ETF (SOXX) declined 3%, outperforming the broader tech fund QQQ. TSM's CEO cited strong AI demand but noted margin pressure from new process nodes and overseas fabs.

Taiwan Semiconductor Manufacturing Company Limited (TSMC) provided earnings guidance for Q4 2026, expecting revenue between $52.3B and $54.3B and operating profit margin between 56.5% and 58.5%. The guidance is based on the company's current business outlook and an exchange rate assumption of USD 1 to TWD 31.8.