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TSMC Shares Dip Despite Record Earnings; CEO Wei Unfazed as Analysts Maintain Bullish Outlook
Electronic Technology · Semiconductors · economic_daily · 2026-10-16
2330
TSMC shares fell following a record-breaking third quarter and an upgraded revenue outlook, with CEO C.C. Wei joking about the market's reaction. Despite the short-term price drop, analysts remain highly optimistic about long-term AI-driven growth, with price targets reaching as high as 5,000 TWD.
What Happened
Record-Breaking Results: TSMC reported a stellar third quarter with consolidated revenue hitting 1.49 trillion TWD and net profit reaching 763.06 billion TWD. The company also raised its 2026 full-year revenue growth forecast to approximately 44%, citing sustained and robust demand for AI chips.
Market Reaction: Despite the strong financial performance, TSMC shares closed down 20 TWD at 2,420 TWD on the day following the earnings call. Chairman C.C. Wei remarked that he had anticipated a potential dip, admitting that the market's negative reaction did affect his mood.
Analyst Optimism: Institutional investors remain overwhelmingly bullish on TSMC's long-term prospects, with Aletheia Capital setting a record price target of 5,000 TWD. BNP Paribas also raised its target to 3,090 TWD, highlighting the company's critical role in the global AI infrastructure build-out.
Local Brokerage Support: Domestic analysts have followed suit, with firms like KGI and Taishin Securities raising their price targets to 3,650 TWD and 3,550 TWD respectively. The consensus remains that TSMC's dominance in advanced manufacturing provides significant room for valuation expansion.