TSMC posts record profit as AI chip demand holds strong

TSMC reported net profit of T$763.1 billion ($23.59 billion) for the July-to-September quarter, up 69% from a year earlier and above the T$746.3 billion forecast compiled by LSEG. The result marked its sixth consecutive quarter of record earnings, supported by strong demand for advanced AI chips and its CoWoS chip-packaging technology. The company is a key supplier to Nvidia and Apple.

Fourth-quarter revenue is expected to reach $52.3 billion to $54.3 billion, compared with $33.73 billion a year earlier, implying growth of approximately 55% to 61%. The outlook followed an upbeat assessment from chipmaking equipment supplier ASML, offering further evidence that AI infrastructure spending remains strong despite investor concerns about its durability.

TSMC maintained its 2026 capital expenditure forecast at $60 billion to $64 billion. It is also investing $165 billion in chipmaking facilities in Arizona, including an additional $100 billion announced in July. Reuters reported in September that the company was evaluating a potential Texas investment. Despite the strong operating performance, TSMC shares closed down 2% ahead of the earnings release amid a broader technology sell-off tied to concerns about further U.S. interest rate hikes.