TSMC's Q3 net profit rose 69% year-over-year, beating expectations; full-year revenue growth forecast raised to 44%

Odaily News: TSMC reported its third-quarter financial results, with net profit rising 69% year-over-year to NT$763.1 billion (approximately $23.6 billion), beating market expectations. Revenue grew 51% year-over-year to $47 billion, also exceeding market forecasts.

Driven by sustained growth in AI demand, TSMC raised its 2026 USD-denominated revenue growth forecast from slightly above 40% to approximately 44%, with full-year capital expenditure expected to be between $60 billion and $64 billion. The company expects fourth-quarter revenue of $52.3 billion to $54.3 billion, a gross margin of 65% to 67%, and an operating margin of 56.5% to 58.8%.

TSMC stated that demand for advanced processes remains strong, with revenue growth accelerating over the past two consecutive quarters. The company is currently building and equipping approximately 20 fabs simultaneously, far exceeding the previous scale of constructing 4 to 5 new fabs at the same time. The company will also send teams to assess power supply and data center construction progress in the United States, but will remain cautious when formulating its 2027 business plan.

Despite growing market concerns over the scale of AI infrastructure investment, institutions continue to raise their capital expenditure forecasts for TSMC in 2027. Goldman Sachs expects it to reach $85 billion, while UBS projects $90 billion, both above the institutional survey average of $75 billion. (Jinshi)