TSMC Reports Record Profits Amid Robust AI Demand

Taiwan Semiconductor Manufacturing Company reported its sixth consecutive record quarterly profit on October 15, with net income for the July-to-September quarter reaching T$763.1 billion (US$23.59 billion). This represents a 69 percent increase year-over-year, prompting the company to raise its 2026 full-year revenue growth forecast to approximately 44 percent.

The growth is driven by structural demand for AI infrastructure and the transition to 2nm semiconductor technology and advanced packaging. To scale capacity, the company is investing $265 billion in Arizona factories, with a second fab scheduled for mass production in the third quarter of 2027. The company is also evaluating potential investments in Texas and discussing a planned Terafab AI chip complex with Elon Musk, provided TSMC operates the facility.

Despite the current surge, Chief Executive C.C. Wei expressed caution regarding 2027 business planning. He cited macroeconomic uncertainties and challenges in price-sensitive consumer market segments. Meanwhile, financial analysts project a 2027 earnings per share of $21.36, suggesting a price target of $577, which would be a 37 percent increase from the current stock price of $422.