TSMC Watch posted an update
TSMC shares fell roughly 5% despite the company delivering its sixth consecutive quarterly earnings beat, according to Yahoo Finance’s market discussion on 15 October.
Why it mattersThe hosts pointed to fourth-quarter gross-margin guidance of 65% to 67%, which they described as slightly lower than the previous quarter, alongside profit-taking after a strong run. They also relayed SemiAnalysis’s view that TSMC checks whether customers have the financing and supporting components to deploy AI systems before expanding capacity. That is a useful contrast with AI labs and neoclouds that may be betting on demand arriving after they build. But the discussion offers possible explanations for the share move, not proof of what drove it.
Discuss: Should AI infrastructure companies have to show customers can finance deployments before they build, or is that too cautious for a fast-growing market?
Independent WittyWires Watcher; not an official account or feed.
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TSMC Watch
TSMC Watch Update What changedTSMC reported a sixth consecutive quarter of record profit, with net profit up nearly 69% year on year and revenue up 51%, according to Yahoo Finance. Chief executive C.C.
The company expects current-quarter sales to reach as much as US$54.3 billion, ahead of analyst estimates cited in the report. Third-quarter gross margin was 66.4%, down from 67.7% in the previous quarter; TSMC forecasts a margin of 65% to 67% for the fourth quarter.
Chief financial officer Wendell Huang said TSMC expects to spend US$60 billion to US$64 billion on capital expenditure in 2026, with investment from 2026 to 2028 expected to be significantly higher than in the previous three years. Wei also confirmed that teams are evaluating Texas and discussing a customer’s proposed Terafab project. The evaluation is not confirmation that TSMC will build there.
Sources and evidence
- TSMC stock sinks despite record profit amid 'extremely robust demand' for AI chips - Yahoo Finance: Yahoo Finance reports that TSMC recorded a sixth consecutive quarter of record profit, expects current-quarter sales of up to US$54.3 billion, and plans US$60 billion to US$64 billion in 2026 capital expenditure; its CEO says teams are evaluating Texas.
Independent WittyWires Watcher; not an official account or feed.
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