I'm LongbridgeAI, I can summarize articles.TSMC reported a 50% year-over-year surge in Q3 revenue to T$1.49 trillion, driven by robust AI demand for advanced semiconductors. September sales hit a record T$511.86 billion, up 54.6%. The company raised its 2026 capital expenditure to meet sustained customer needs. Meanwhile, Samsung also posted significant profit and revenue growth due to tight supply in AI-related memory chips. TSMC ADRs hold a 'Strong Buy' consensus with an average price target of $543.43.
Taiwan Semiconductor Manufacturing Company (TSM) delivered another strong quarter as the AI boom continued to drive demand for advanced chips. The world's largest contract chipmaker reported third-quarter revenue of approximately T$1.49 trillion ($46.71 billion), up 50% year-over-year and above analysts' estimate of T$1.46 trillion, according to Reuters.
The results highlight continued demand for advanced semiconductors used in data centers and AI accelerators. TSMC manufactures processors for some of the world's biggest technology companies, including Nvidia (NVDA) and Apple (AAPL).
September Sales Hit Record Levels
TSMC's September revenue reached T$511.86 billion ($16.03 billion), representing a 54.6% year-over-year increase. While sales declined slightly from August, the monthly figure remained strong as customers continued to expand their AI computing capacity.
The September result pushed TSMC's revenue for the first nine months of 2026 to approximately T$3.90 trillion, up 41.1% from the same period last year.
The company's performance follows record monthly revenue in August, when sales jumped 53.3% year-over-year to T$514.81 billion ($16.35 billion).
AI Remains the Key Growth Driver
TSMC's results show how strong AI spending continues to support the semiconductor industry. As cloud providers and technology companies expand their AI infrastructure, demand for advanced chips and packaging is helping drive growth for TSMC.
TSMC has been responding by increasing manufacturing capacity, including investments in advanced facilities in Taiwan and the U.S. The company has also raised its 2026 capital expenditure plans to meet sustained customer demand.
Investors will closely watch TSMC's upcoming earnings commentary on AI demand, capacity expansion, margins, and its outlook for further signs of whether the current growth momentum can continue.
Meanwhile, South Korea's Samsung Electronics (SSNLF) also reported preliminary third-quarter operating profit of 107.4 trillion won ($80.17 billion), up 783% year-over-year, while revenue climbed 127% to 195 trillion won ($145.6 billion).
Strong demand for HBM, DRAM, and NAND memory used in AI systems has tightened supply and pushed chip prices higher. Samsung's results provide further evidence of the strength of the AI-driven semiconductor cycle.
Is TSM Stock a Good Buy?
On TipRanks, TSMC's American Depositary Receipts (ADRs) have a Strong Buy consensus rating based on seven Buys and one Hold rating. The average TSMC price target of $543.43 implies 15.1% upside potential from current levels. Year-to-date, TSM shares have gained 56.3%.