TSMC posts record third-quarter profit and lifts capex outlook to $98 billion

what happened

According to ru.tradingview.com, TSMC (2330) booked third-quarter revenue of $46.7 billion, up 16.2% from the previous quarter. Gross margin reached 66.4%, and net profit rose 69% year on year to a record. High-performance computing accounted for 68% of sales, and AI demand is reported to be exceeding available capacity.

Morningstar raised its capex forecast for TSMC to $98 billion by 2028, citing expanded 2nm and 1.4nm production and possible further U.S. expansion. Barclays lifted its price target to $670 from $665. Even so, the shares fell about 1.7% on October 16 to roughly $414.95.

Reportedly, TSMC has held talks with Tesla about a possible Terafab chip plant in Texas. No deal or operational role has been confirmed, and the project is not yet approved or included in forecasts.

why it matters

For markets, this signals sustained demand for advanced AI chips and rising investment in manufacturing capacity. Higher capex matters for chip equipment suppliers and the broader semiconductor sector, though the U.S. and Japanese expansion plans will take time to materialize.

market impact

Semiconductors and AI stocks: strong demand and higher capex support expectations for chip and equipment suppliers.

tags

instruments