TSMC Q3 Earnings: Strong AI Demand Sets the Bar High for Growth

TSMC's July-August sales trajectory suggests Q3 revenues will reach the upper end of guidance, supported by robust AI demand and the ramp-up of 2nm technology. The company raised its 2026 revenue growth forecast to above 40%, though higher 2nm production costs are expected to pressure margins. EPS estimates have risen 10.4% to $4.45, indicating strong earnings growth despite margin headwinds.