Key Takeaways
💰 Record profit: TSMC made NT$763.06 billion (about $23.6 billion) in July–September. That is up nearly 69% on a year ago.
📈 Beat its own forecast: Sales were $46.72 billion. TSMC had guided $44.6–45.8 billion in July.
🧮 Huge margin: 51.1% of sales became profit. That is about 51 cents kept from every dollar.
🌏 Bad timing: The results landed on a brutal day. Korea’s market fell about 8% and trading was halted for 20 minutes.
⚖️ Honest catch: TSMC’s US shares (TSM) fell 3.4% on Wednesday to $430, and record numbers may not stop a sector-wide sell-off.
🔍 Want to dig deeper? Research TSM and other chip stocks on Nemo.money, from $1.
⚡ The Short Version
TSMC makes the chips inside most AI servers and iPhones. Today it reported its sixth record profit in a row.
The number was big. But the mood in chip stocks is fearful. Korea’s market crashed. Japan fell hard. US chip stocks dropped after hot inflation data.
So this is a story about one simple idea: how much a company keeps from each sale.
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📊 The Numbers
From TSMC’s official Q3 2026 release:
💵 Revenue: NT$1,494.24 billion ($46.72 billion). Up 50.9% in Taiwan dollars, 41.2% in US dollars.
🏆 Net profit: NT$763.06 billion. Up 68.7% year on year.
🧾 Earnings per ADR: $4.60. A year ago it was $2.92.
📐 Margins: Gross 66.4%. Operating 58.7%. Net 51.1%.
🔬 Newest chips: 2-nanometer was 8% of wafer sales. 3-nanometer was 33%.
🎯 Vs. analysts: Profit beat the LSEG estimate of NT$746.3 billion (Reuters).
🧮 Why 51 Cents Matters
Most companies keep far less than half of each sale as profit.
🏭 TSMC spends billions on factories. But once built, each extra chip is very profitable.
🔒 Few rivals can make the most advanced chips. That gives TSMC pricing power.
📉 Its operating margin (58.7%) even came in above the top of its own 56–58% guide.
Back in the Oct 12 sales update, we only knew revenue. Today we know the profit. It held up.
🌏 The Day Around It
🇰🇷 Korea: The KOSPI fell about 8% and hit a circuit breaker. SK Hynix and Samsung each fell more than 10% (Korea Herald).
🇯🇵 Japan: The Nikkei 225 fell around 4–5% (AP, Investing.com).
🇺🇸 US: September inflation came in at 3.7%, above the 3.6% expected. The Nasdaq fell 1.9% on Wednesday.
💸 AI money worries: Gulf News, citing Bloomberg, said foreign investors pulled more than $10 billion from Korean stocks this month.
Chip-equipment maker ASML also posted strong numbers this week. Read our ASML breakdown.
💡 The One Lesson
A great company and a great price are two different things.
✅ TSMC’s business just had a record quarter.
❌ Its share price still fell, because investors fear rates and an AI slowdown.
🧠 Share prices move on what people expect next. Not only on what just happened.
Learn more in our semiconductor stocks explainer.
⚖️ The Honest Catch
The case for caution:
📉 TSM closed at $430 on Wednesday, about 12% below its 52-week high of $487.47 (StockAnalysis).
🏦 Higher US inflation may mean higher rates. That often hurts richly valued tech stocks.
🔁 TSMC depends on a few huge AI customers. If they cut spending, sales could slow fast.
🌐 Its factories are mostly in Taiwan. That brings geopolitical risk.
The other side:
🏆 Six record profits in a row is real, hard evidence of demand.
🎯 It beat the top of its own forecast on sales and operating margin.
📊 Analysts remain mostly positive. Barclays has a $665 target. The MarketBeat consensus target is about $525. These are their views, not ours.
🙋 What It Means for You
🔍 Watch the Q4 forecast. That often moves the stock more than the past quarter.
🧺 One stock can swing hard. An ETF spreads that risk. See our ETF explainer.
🧭 Volatile days test discipline. Revisit our Top 10 rules of investing.
🏷️ TSM, ASML and other tickers here are examples to research, not recommendations.
📱 How to Research with Nemo.money
💵 Invest from $1 with fractional shares.
🆓 Zero commission on US stocks.
🤔 Not sure where to start? Nemes can help you find ideas.
🏦 Waiting on the sidelines? Nemo.money pays 6% AER interest, paid daily in USD.
Start on Nemo.money.
❓ FAQs
1. How much profit did TSMC make in Q3 2026?
TSMC reported net profit of NT$763.06 billion, about $23.6 billion. That was up 68.7% from a year earlier and a record.
2. Did TSMC beat expectations?
Yes. Sales of $46.72 billion beat the top of its $44.6–45.8 billion guidance. Profit beat the LSEG analyst estimate of NT$746.3 billion.
3. Why did TSMC shares fall if profit was a record?
The whole chip sector sold off on rate fears and AI spending worries. Korea’s market fell about 8%. Prices reflect future expectations, not just past results.
4. Is TSMC a good buy after earnings?
Supporters point to record profits, a 51% net margin and strong AI demand. Critics point to rate risk, customer concentration and Taiwan risk. TSM is an example to research, not a recommendation.
5. Can I invest in TSMC from the UAE?
TSMC trades in the US as an ADR under the ticker TSM. On Nemo.money you can research it and invest from $1 with fractional shares.
🏁 Final Thoughts
TSMC just showed how profitable the AI chip boom is. It kept about 51 cents of every sales dollar.
But markets are scared today. Record results did not stop the sell-off.
That gap between business and share price is where long-term investors do their homework.
👉 Start researching on Nemo.money
Nemo = Never Miss Out.
Stay informed. Stay ahead.
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Terms and conditions apply. This is not investment advice. Past performance is not indicative of future results. Your capital is at risk. See website for Risk Disclosure. Exinity ME Ltd (nemo.money) is regulated by ADGM’s Financial Services Regulatory Authority.
