TSMC Posts $46.7 Billion Revenue and 69% Profit Jump in Sixth Straight Record Quarter

TSMC, the world's largest contract chipmaker, extended a remarkable earnings run on October 15 by reporting third-quarter 2026 results that beat its own guidance on every measure. Consolidated revenue came in at NT$1,494 billion (US$46.72 billion), up 41.2% year on year, exceeding TSMC's guidance range of $44.6–$45.8 billion. Net income surged 68.7% to NT$763 billion — equivalent to US$4.60 per ADR unit — marking the sixth consecutive quarter of record net profit and the eleventh consecutive quarter of record earnings overall. Gross margin reached 66.4% and the net profit margin hit 51.1%. High-performance computing, which includes chips powering artificial-intelligence applications, accounted for 68% of net revenue, up from 57% a year earlier, reflecting the insatiable appetite for AI accelerators from customers including Nvidia, AMD and Apple. Advanced 2-nanometre node production began expanding during the quarter. For the fourth quarter, TSMC guided revenue of $52.3–$54.3 billion, well above the Wall Street consensus of $50.2 billion. The company also raised its full-year 2026 revenue growth forecast to approximately 44%. The blockbuster results offered a counterpoint to the simultaneous sell-off in broader semiconductor stocks, highlighting how AI-driven chip demand is enriching the top of the manufacturing pyramid even as investors question the economics of the wider AI ecosystem.