Jeff Pu(@sssjeffpu):TSMC (2330, TSM) 3Q26 Summary - Growth intact, profitability less so ☕️ Earnings lukewarm, growth high, margins softer. • 3Q: Rev +16% QoQ / +41% YoY, GM 66.4% (slight miss), EPS NT$29.4 • 4Q guide: Rev $52.3–54.3bn (+14% QoQ / +58% YoY), GM 65–67% softer • 2027: +39% YoY rev on strong AI demand • Capex elevated; N2 capacity more than doubles in 2027, A14 ramps faster • Faster A14 important for mobile customers facing recent SoC challenges in 2nm, but adds margin pressure to TSM • Any Terafab collab would require TSMC to operate the fab (therefore -> unlikely to happen given Musk’s comments) • Margins expected largely flattish through 2027–28 on dilution + overseas expansion 💰Slight EPS lift, TP nudged to NT$2,999 (20x 2027E). Hold Rating ! #TSM #AI #semi

2026.10.15 23:43

TSMC (2330, TSM) 3Q26 Summary - Growth intact, profitability less so ☕️ Earnings lukewarm, growth high, margins softer. • 3Q: Rev +16% QoQ / +41% YoY, GM 66.4% (slight miss), EPS NT$29.4 • 4Q guide: Rev $52.3–54.3bn (+14% QoQ / +58% YoY), GM 65–67% softer • 2027: +39% YoY rev on strong AI demand • Capex elevated; N2 capacity more than doubles in 2027, A14 ramps faster • Faster A14 important for mobile customers facing recent SoC challenges in 2nm, but adds margin pressure to TSM • Any Terafab collab would require TSMC to operate the fab (therefore -> unlikely to happen given Musk’s comments) • Margins expected largely flattish through 2027–28 on dilution + overseas expansion 💰Slight EPS lift, TP nudged to NT$2,999 (20x 2027E). Hold Rating ! #TSM# #AI# #semi#