TSMC revenue hits another record high
The earnings report on October 15 will have an even more important number to watch
TSMC's third-quarter revenue reached NT$1.49 trillion, up about 50% year over year and setting another all-time record.
Revenue for September alone reached NT$511.86 billion, up 54.6% year over year.
That growth rate is already remarkable, and actual third-quarter revenue also exceeded the company's earlier guidance of US$44.6 billion to US$45.8 billion.
But in the October 15 earnings report, I’m more interested in gross margin.
TSMC previously forecast a third-quarter gross margin of 65% to 67%, and an operating margin of 56% to 58%.
AI chip demand continues to grow, and capacity for advanced process nodes is tight. If gross margin also comes in above the top end of guidance, it would mean TSMC is benefiting not just from higher shipment volumes—its pricing power may also be stronger than the market expects.
The company's 2027 capital expenditure plans are also worth watching.
If the company continues to significantly increase capital spending, it would indicate that management remains confident in future AI orders, but it would also add to depreciation pressures.
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The earnings report on October 15 will have an even more important number to watch
TSMC's third-quarter revenue reached NT$1.49 trillion, up about 50% year over year and setting another all-time record.
Revenue for September alone reached NT$511.86 billion, up 54.6% year over year.
That growth rate is already remarkable, and actual third-quarter revenue also exceeded the company's earlier guidance of US$44.6 billion to US$45.8 billion.
But in the October 15 earnings report, I’m more interested in gross margin.
TSMC previously forecast a third-quarter gross margin of 65% to 67%, and an operating margin of 56% to 58%.
AI chip demand continues to grow, and capacity for advanced process nodes is tight. If gross margin also comes in above the top end of guidance, it would mean TSMC is benefiting not just from higher shipment volumes—its pricing power may also be stronger than the market expects.
The company's 2027 capital expenditure plans are also worth watching.
If the company continues to significantly increase capital spending, it would indicate that management remains confident in future AI orders, but it would also add to depreciation pressures.
$TSMB $BTC $ETH