$TSM · TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD

TSMC reported Q3 2026 consolidated revenue of NT$1,494.24 billion ($46.72B USD), up 50.9% YoY, with net income of NT$763.06 billion and diluted EPS of NT$29.43 (US$4.60 per ADR). Gross margin reached 66.4% and operating margin hit 58.7%. The 2-nanometer node contributed 8% of wafer revenue in its ramp quarter. Management guided Q4 revenue to $52.3–$54.3 billion with gross margin of 65%–67% and operating margin of 56.5%–58.5%.

TSM down 4.03% in regular trading to $412.67 despite the strong report and guidance, suggesting profit-taking or macro pressure on the $2.14T market-cap name after the 50.9% YoY revenue print was already priced in.

TSMC's 2nm node hitting 8% of revenue in its first material quarter, combined with 50.9% YoY growth and Q4 guidance above $52B, confirms the AI-driven leading-edge cycle is accelerating.

TSMC's 2nm ramp to 8% of wafer revenue in its first material quarter reinforces its process-leadership moat over Intel and Samsung, while 79% advanced-node mix underscores AI-driven demand from customers like NVIDIA and AMD.

Q4 gross margin guidance midpoint of 66% is slightly below Q3's 66.4%, suggesting 2nm ramp costs may pressure near-term profitability. Exchange rate assumption of 31.8 NT/USD introduces forex sensitivity.