TSMC: The AI Cycle Just Sent Another Signal

What happened: Taiwan Semiconductor Manufacturing Company ($TSM) reported Q3 results, and its Q4 guidance implies continued growth despite difficult comparisons. Key numbers: Q3 revenue $46.7 billion. Q4 guidance implies 14% sequential growth. HPC reached 68% of revenue. N2 is 8% of wafer revenue. Why it matters: The report made it difficult to keep arguing for an impending slowdown in the AI semiconductor cycle, and the author says AI demand continues to exceed available capacity. The author sees improving risk-reward at the current price.

Taiwan Semiconductor Manufacturing Company ($TSM) reported Q3 results, and its Q4 guidance implies continued growth despite difficult comparisons.

The report made it difficult to keep arguing for an impending slowdown in the AI semiconductor cycle, and the author says AI demand continues to exceed available capacity. The author sees improving risk-reward at the current price.