Daily newsletter · Fri 16 Oct 2026
TSMC made a record profit and raised its sights, and its shares still fell 1.8%
TSMC's American-listed shares fell 1.80% to US$422.25 on Thursday. Hours earlier the chipmaker, which builds processors for Nvidia and Apple, reported a record September-quarter profit of NT$763.06 billion, up 68.7% on a year earlier.
The forecast was even better. TSMC expects between US$52.3 billion and US$54.3 billion of revenue in the December quarter. At the midpoint that is about 14% more than in September, and chief executive C.C. Wei said demand for AI accelerators remains strong.
The spending keeps growing too. TSMC plans to put between US$60 billion and US$64 billion into new capacity this year. Finance chief Wendell Huang said spending from 2026 to 2028 will be significantly higher than in the previous three years.
The gross margin slipped 1.3 points to 66.4% as the newest 2-nanometre chips ramped up. Huang expects the factories abroad, including Arizona, to shave 3 to 4 points off it within a few years.
The shares opened sharply lower and fell as much as 5.3% before recovering. The Philadelphia Semiconductor Index fell for an eighth straight session.
Monday's edition said TSMC's outlook would show whether AI money keeps coming. For the next three months, it plainly does. Our read is that investors now doubt the borrowers further down the chain, and a supplier's order book cannot settle that.
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General information and commentary only, not financial advice. It does not take account of your objectives, financial situation or needs, and reflects the author's own reading of public information at the time of writing, which may be wrong. Sharespective, its people and its clients may hold positions in the companies covered. Do your own research and talk to a licensed adviser.