Taiwan Semiconductor Manufacturing Company (TSMC) reported a record 69% year-over-year increase in net profit for the third quarter of 2026. The company raised its full-year 2026 revenue growth forecast to approximately 44% in U.S. dollar terms. High-performance computing now serves as the largest revenue contributor at 68% of the total.
Management confirmed that AI chip demand continues to exceed current supply capabilities. The Japanese government approved plans for 3-nanometer chip production at TSMC’s second Kumamoto plant. The company is also evaluating Texas as a potential location for further U.S. expansion.
TSM shares experienced a price pullback despite the positive financial results. Investors expressed concern regarding margin dilution from the 2-nanometer process ramp-up. Analysts maintained bullish outlooks and issued strong buy ratings citing sustained AI-driven growth.