$TSM

TSMC (NYSE:TSM) shares fell 2.5% to $434.28 ahead of earnings on Oct. 15. September revenue rose 54.6% YoY to NT$511.86B, but dipped 0.6% MoM. Q3 guidance projects $44.6B-$45.8B revenue, up 10.9%-13.9% QoQ. Shares trade 15.57% above GF Value estimate of $375.78.

Taiwan Semiconductor (TSMC) is set to report Q3 2026 earnings, with expectations of strong AI-driven demand and revenue growth. The company's advanced technologies and packaging solutions are anticipated to support performance. Q3 EPS estimates improved 9.1% to $4.45, with revenue expected at $45.62B, up 37.8% YoY. TSMC's stock has underperformed the sector but has beaten estimates in the last four quarters. Management raised 2026 capex to $60-64B and projected over 40% revenue growth.

Taiwan Semiconductor (TSM) reported September revenue up 54.6% YoY, with full-year growth guidance raised to over 40%. Shares fell 7.7% on AI spending concerns, despite a 47.62% YTD gain. Q3 EPS is expected at $4.46 on revenue of $44.6B-$45.8B. Analysts see 24.7% upside, with a target of $555.01. Margin dilution and heavy capex are risks.

ASML reports progress in High-NA EUV technology adoption. Intel has processed 1M wafers, Samsung targets 2028 for production, and TSMC aims for 2030. ASML expects increased adoption but cautions that revenue growth will take time. The company faces capacity constraints for existing systems and is exploring expansion. Investors should watch adoption timelines and customer execution.

ASML reports record Q3 sales and profit, raising its sales forecast. TSMC is expected to report a 65% net profit increase. Bank earnings mixed: JPMorgan missed, Goldman beat. BofA fined $1.2B. Klarna grew revenue 27% in Q2 2026, posting a profit. Inflation data expected to show 0.6% monthly increase.

Big Tech companies are increasingly designing custom AI chips, benefiting chipmakers like Broadcom (AVGO), Marvell (MRVL), and TSMC (TSM). Alphabet (GOOGL, GOOG) and Microsoft are among those investing heavily in custom processors, with Broadcom reporting AI semiconductor revenue of $56B this year. TSMC, manufacturing most advanced processors, saw Q2 sales rise 36% to $40B. Nvidia (NVDA) and AMD (AMD) also play key roles, with AMD's Q2 sales up 50% to $11.5B.

TSMC may reach its 2027 2nm production target of 110,000-140,000 wafers/month a year early, now aiming for 120,000 wafers/month by 2026 end. Strong demand from NVIDIA, AMD, Apple, and Qualcomm is driving this acceleration, according to reports. Bank of America expects 2nm's revenue contribution to jump from 3% to 11% in Q3.

Asian markets fell sharply, led by Taiwan's TAIEX, which dropped 1.95% due to tech stock declines. Taiwan Semiconductor Manufacturing Co fell 1.97%, while Nanya Technology Corp slid 7.4%. South Korea's KOSPI fell 5.5%, with Samsung and SK Hynix down over 7% and 10% respectively. Japanese stocks also declined, with chipmakers Kioxia, Tokyo Electron, and Advantest falling over 7%.

Saudi Aramco's CEO warned of thin global oil stocks, raising concerns about Taiwan's energy security. Taiwan has 140 days of crude oil but only 11 days of natural gas, which generates 47.8% of its electricity. Recent supply disruptions led to higher spot market prices and increased costs for Taiwan. The country faces economic, fiscal, and political challenges due to its limited gas reserves, with TSMC using 9% of Taiwan's electricity.

Qnity, a supplier of semiconductor materials, is expanding U.S. production to capture more AI chip business. CEO highlights 'local-for-local' strategy. Qnity's CMP business grew 20% in 2026, with other materials up over 50% YoY. The company expects $600M-$700M in free cash flow this year. Qnity reports Q3 earnings on November 4, with EPS and revenue estimates at $1.20 and $1.49B, respectively. Pre-market, TSMC, Intel, and Nvidia stocks fell amid broader semiconductor weakness.