Taiwan Semiconductor Manufacturing reported third quarter results that significantly exceeded analyst expectations, driven by relentless demand for AI infrastructure and advanced logic nodes. Revenue surged 41.2% year-over-year in USD terms, while gross margins expanded to a record 66.4% despite the initial ramp-up costs associated with 2-nanometer production. The company raised its full-year 2026 outlook, now expecting revenue growth of approximately 44% in USD terms.
Key Highlights
- Quarterly revenue reached $46.72 billion, representing a massive 45% beat against the $32.1 billion consensus estimate.
- Advanced technologies (7nm and below) accounted for 79% of total wafer revenue, with 3nm specifically contributing 33%.
- Initial shipments of the next-generation 2-nanometer node reached 8% of total wafer revenue, indicating a faster-than-anticipated commercial ramp.