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TSMC Shares Waver Post-Earnings; Analysts See Buying Opportunity at Quarterly Support
Electronic Technology · Semiconductors · economic_daily · 2026-10-16
2330
TSMC reported record Q3 earnings, yet shares dipped as some metrics missed expectations; analysts suggest the pullback to the quarterly line is a prime entry point.
What Happened
Financial Results: TSMC posted record-breaking revenue and net profit for the third quarter, with earnings per share reaching 29.43 TWD and a gross margin of 66.4%. Despite these strong headline figures, some metrics fell short of analyst expectations, including a slight quarter-over-quarter decline in gross margin due to depreciation and a lower-than-anticipated contribution from advanced nodes.
Market Reaction: Following the earnings call, TSMC shares experienced mild selling pressure as investors scrutinized the specific performance indicators. Analysts noted that because the stock had already undergone a correction prior to the event, the post-earnings decline remained limited rather than triggering a major sell-off, reflecting a market that had already priced in some caution.
Future Outlook: The company provided a positive outlook for the fourth quarter, projecting revenue between 52.3 billion and 54.3 billion USD with gross margins expected to remain robust between 65% and 67%. Strong demand for advanced process technologies continues to drive the company's growth trajectory, signaling that the fundamental business outlook remains solid.
Investment Strategy: Analysts emphasize that while certain Q3 figures missed the mark, the stock's retreat to the quarterly moving average presents a strategic buying opportunity for long-term investors. Market participants are advised to focus on the sustained demand for advanced manufacturing and the company's ability to maintain high utilization rates in the coming quarters.