1 Reason TSMC Stock Could Rally After Its Record Quarter
Taiwan Semiconductor Manufacturing (NYSE: TSM) is up about 39% year-to-date as of Oct. 15, 2026, compared to about 13% for the S&P 500. The world’s largest contract chipmaker, which manufactures processors for many of the biggest names in tech, just reported record quarterly revenue. And the stock could keep climbing for one reason: Demand for AI chips is still outpacing TSMC’s ability to make them.
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Third-quarter revenue surged 41% over the year-ago quarter, reaching $46.7 billion. Its high-performance computing business, which includes artificial intelligence (AI) data center chips, made up 68% of sales. Management expects fourth-quarter revenue of $52.3 billion to $54.3 billion, representing year-over-year growth of about 58% at the midpoint.
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