TSMC posts record Q3 as AI chip demand pushes revenue up 50.9%

Taiwan Semiconductor Manufacturing Co. just had the kind of quarter most companies only see in investor-day slide decks. On October 15, 2026, the chipmaker reported record third-quarter revenue of NT$1,494.24 billion, or approximately $46.72 billion.

That figure is up 50.9% from a year earlier.

Revenue climbed 17.6% compared with the second quarter.

Profit grew even faster than sales. Net income hit a record NT$763.06 billion ($23.59 billion), a 68.7% jump year over year.

High-performance computing, the category that covers AI accelerators and data center processors, made up 68% of net revenue.

Advanced nodes, meaning chips built on 7nm processes and smaller, generated 79% of wafer revenue. The 3nm process alone accounted for 33% of wafer revenue. Meanwhile, 2nm production is expected to come online soon.

Margins slip, guidance climbs

Gross margin came in at 66.4%, down from 67.7% in the second quarter. Operating margin landed at 58.7%.

TSMC guided fourth-quarter revenue to between $52.3 billion and $54.3 billion.

The full-year outlook moved higher too. TSMC now expects 2026 revenue growth of approximately 44% in US dollar terms, up from its prior forecast of more than 40%.

Building for the next wave

The company plans to expand its 3nm capacity in Taiwan, with production from that expansion expected in the first half of 2028.

TSMC has also committed an additional $100 billion investment in Arizona.

What this means

Management has expressed caution about 2027, citing broader economic uncertainties.

Key items to watch from here include the timing of the 2nm ramp, the progress of the Arizona investment, and whether fourth-quarter revenue lands inside the $52.3 billion to $54.3 billion range.