What analysts are watching with key semiconductor maker TSMC set to report results

By Nora Redmond

Taiwan Semiconductor Manufacturing Co.'s shares listed in New York have risen about 49% since the start of the year.

Taiwan Semiconductor Manufacturing Co., or TSMC, is set to post its third-quarter earnings results on Thursday slightly before 2 a.m. Eastern after already posting record-breaking revenue for the period - and analysts think sales have further to grow.

The semiconductor foundry has already said its net revenue in September reached 511.86 billion new Taiwanese dollars ($15.94 billion). It brings revenue for the third quarter to a new high of 1.49 trillion new Taiwanese dollars ($46.54 billion), up about 17% from last quarter - the last time a record for revenue was set - and up 51% year-on-year.

Wall Street forecasts earnings per share of 28.89 new Taiwanese dollars, which would be an increase from 17.44 this time last year.

The American depository receipts of TSMC (TSM) (TW:2330) have gained 49% since the start of the year. The company has rallied as hyperscalers have boosted AI spending, with customers including Nvidia, Apple and Intel relying on it to manufacture microchips.

The company usually gives financial guidance for the quarter ahead, and executives including chairman and CEO C.C. Wei generally discuss broader demand and supply trends.

Analysts at JPMorgan, led by Gokul Hariharan, wrote in a recent note that they see demand continuing to grow into 2028, allowing TSMC's revenue to increase 30% year-on-year that year.

"TSMC is one of the most important enablers of the AI revolution due to its fabrication capabilities in leading-edge silicon chips, so confirmation of its commitment to expanding capacity will signal confidence that growth rates have not peaked," a team of analysts at AJ Bell, led by Russ Mould, investment director, wrote in a recent note.

Analysts at Citigroup, headed by Laura (Chia Yi) Chen, see TSMC's AI revenue growth almost doubling in 2027 as many of its largest customers, like Nvidia and Advanced Micro Devices, are expecting a boost in growth.

The New York-stock has faced a challenging month however, with shares down almost 9% since Oct. 5 as chip names broadly across the board have seen losing streaks ahead of Anthropic's closed-door investor day and as concerns surrounding the AI trade have risen after a number of technology CEOs expressed worries over the pace of the tool's development.

-Nora Redmond

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

10-14-26 0736ET