Review| $TSM 26Q3: Revenue Guidance Beats Expectations as Expansion Weighs on Margins TSMC expressed confidence in advanced-node and long-term AI demand during its earnings call. Management said that, alongside discussions with direct customers and their downstream customers, its teams had checked US data center construction and power availability, with encouraging feedback so far. Agentic AI and open-source models are also increasing demand for computing chips. TSMC is responding by adding N3 fabs, departing from its usual practice of stopping capacity additions once a node reaches its target. Detailed Report

Review| $ASML 26Q3: Upgrades Lift Gross Margin; Capacity Expansion Awaits Further Clarity ASML’s Q3 gross margin and Q4 guidance both beat expectations. The company narrowed its 2026 revenue guidance to EUR 44–45b and raised its full-year gross margin guidance to around 56%, driven by continued strength in the upgrade business within Installed Base Management. The company stated that its plan to increase capacity by 30% in 2027, together with the further 30% increase in 2028 that had been under investigation, will still not fully meet customer demand, and it is now looking into expanding 2028 capacity beyond 30%. Customers have expressed interest in placing orders for 2029 and 2030, although ASML has not yet accepted those orders. We raise our 2026/27/28 EPS forecasts to EUR 42.5/61.4/76.9. Detailed Report