Taiwan Semiconductor Manufacturing Co. Stock News

A strong earnings report from Taiwan Semiconductor Manufacturing on Thursday wasn't enough to stop a weeklong slide for chip stocks.

Taiwan Semiconductor (TSM) plans to spend as much as $64 billion on capital expenditure (capex) this year, a commitment that could understandably make some shareholders nervous. But the size of that investment tells only half the story.

TSMC makes the vast majority of the world's most advanced chips, but soaring AI demand has sparked fierce competition for manufacturing capacity. Chip companies are cultivating relationships in Taiwan and making the case that they could become TSMC's next big customer.

Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM), the Taiwanese semiconductor foundry, increased third-quarter net income by 69% to NT$763.06 billion as revenue climbed 51% to NT$1.49 trillion. Diluted earnings per share rose 68.7% to NT$29.43 for the three months to September 30, compared with NT$17.44 a year earlier.

SUMMARY Shortage of supply. The four largest hyperscalers and the companies selling the chips and packaging say they still cannot keep up with demand.

AI stocks tumble as a hot inflation reading and Anthropic's slowing revenue growth extend the tech selloff.

TSMC beat estimates for the third quarter and guided above views for the current period. But TSM stock fell.