$TSM (Bloomberg) -- Taiwan Semiconductor Manufacturing Co. is expected to report more than 60% growth in quarterly profit Thursday, though investors will likely focus on the outlook for AI spending and demand in 2027. TSMC reports July-to-September earnings a day after major supplier ASML Holding NV warned of a potential shortfall of its lithography systems used for chipmaking in coming years. That’s stoking worries about disruptions to the global AI buildout, the main source of TSMC’s growth. Read More: ASML Says It Can’t Keep Up With AI Demand for Chip Tools THIRD QUARTER •Net income estimate NT$739.49 billion (Bloomberg Consensus) •Gross margin estimate 66.5% •Operating profit estimate NT$854.35 billion •Operating margin estimate 58.1% •Sales estimate NT$1.46 trillion FOURTH QUARTER •Sales estimate $50.35 billion •Gross margin estimate 66.1% •Operating margin estimate 58% ANALYST COMMENTARY Bloomberg Intelligence: TSMC’s 3Q revenue of about $46.7 billion surpassed guidance of $44.6-$45.8 billion by 2% as AI accelerator and server-processor demand kept leading-edge capacity full. The beat could lift gross margin to the upper end of the 65-67% guidance range, given management topped its margin range in 1Q and 2Q and higher volume helps absorb the 3-4-point drag from the 2-nanometer ramp-up.  •The key number to watch now is 4Q guidance: the full-year target of slightly above 40% growth implies only mid-single-digit sequential expansion, so a raise toward the mid-40s may be needed to meet expectations. •The bigger 3Q questions are about 2027. TSMC’s Arizona expansion, a possible Texas hub and Terafab talks could shape capex and overseas margin dilution, while Taiwan reports point to 3-6% wafer-price increases. Updates on the next-generation A14 processing node and advanced packaging should also clarify TSMC’s response to Intel’s challenge. DATA •For Bloomberg Consensus estimates used in this story see: 2330 TT Equity MODL •Bloomberg Intelligence, Oct. 1: TSMC US Fab Plans, Intel Packaging Rivalry in Focus: 3Q Preview •39 buys, 2 holds, 0 sells •Avg PT NT$3,330 (31.9% upside from current price) •Implied 1-day share move following earnings: 3.1% •Shares up 76.0% in past year vs TWSE Index up 79.6%