TSMC October Revenue Jumps 60% Y-o-Y

TSMC (TSM) stock rose 2.56% after its board approved a $1B investment in Anthropic and OpenAI, split evenly. Anthropic's IPO is priced at $70-$78/share, potentially yielding 6.4M-7.1M shares for TSMC. OpenAI's IPO details are scarce, but TSMC plans to invest in preferred shares. Anthropic aims to raise $26B privately, with AMD, Alphabet, Microsoft, and Nvidia participating. Analysts rate TSM a Strong Buy with a $570 target, implying 43.7% upside.

Anthropic, an AI company, disclosed that Nvidia, Alphabet, AMD, Micron, Broadcom, Microsoft, and TSMC Partners will invest $26 billion in its IPO. Nvidia and Google each commit $10 billion, while others invest smaller amounts. The funds will support Anthropic's $900.9 billion infrastructure spending over 20 years, with $70.7 billion due by September 2027.

TSMC reported October revenue of NT$586.89 billion, up 14.7% from September and 59.7% year-over-year. Shares were down 0.39% in premarket. For the first ten months of 2023, sales totaled NT$4.49 trillion, a 43.3% increase from the same period in 2022.

TSMC's stock surged 7.3% in Taipei after Taiwan activated a stock stabilization fund. Reports suggest TSMC is drafting 3D DRAM plans at Nvidia's request, potentially competing with Samsung, SK Hynix, and Micron. TSMC's Q3 gross margin was 66.4%, and it expects NT$554B-NT$576B monthly revenue in Q4. Nvidia is seeking memory supply due to AI-driven shortages, while Micron faces delays in Taiwan.

Taiwan Semiconductor Manufacturing Co. (TSMC) reported a 59.7% revenue increase in October, driven by strong demand for AI-related chips. Sales reached NT$586.89 billion ($17.88 billion), up 14.7% from September. TSMC's third-quarter net profit was NT$763.1 billion, with revenue of NT$1.49 trillion and an operating margin of 58.7%. The company plans higher capital expenditures from 2026 to 2028 to meet customer demand. TSMC shares rose 2.24% on Tuesday.

TSMC plans to invest up to $1 billion in AI developers Anthropic and OpenAI, with up to $500 million each for shares in Anthropic's IPO and preferred stock in OpenAI. Anthropic's IPO is priced at $70-$78 per share, aiming for a $1.4 trillion valuation. TSMC reported strong AI chip demand and expects 44% revenue growth in 2026.