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On Tuesday, Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) reported a sharp acceleration in October revenue.

TSMC October Revenue Jumps Nearly 60%

TSMC reported October revenue of 586.89 billion New Taiwan dollars ($17.88 billion), up 59.7% from the same month last year and 14.7% from September.

The growth underscores strong demand for advanced chips as major technology companies continue expanding their AI infrastructure investments.

AI Chip Demand Drives TSMC’s Expansion Plans

The chipmaker is also preparing to significantly increase its capital expenditure between 2026 and 2028 compared with the previous three years as it invests in additional manufacturing capacity to meet customer demand, CNBC reported.

Last month, TSMC posted third-quarter revenue of $46.72 billion, up 41.2% year over year and surpassing analyst expectations of $45.62 billion.

Earnings came in at $4.60 per ADR unit, beating the consensus estimate of $4.45, while revenue climbed 16.2% sequentially.

The world’s largest contract chipmaker reported a gross margin of 66.4%, an operating margin of 58.7% and a net profit margin of 51.1%.

TSMC Stock Gains Amid Taiwan Market Volatility

TSMC shares gained 2.24% in Taiwan on Tuesday, shrugging off broader market volatility, while its U.S.-listed shares rose 0.63% to $391.05 premarket on Tuesday.

The gains came as Taiwan’s financial regulator introduced tighter short-selling restrictions that took effect Monday.

The new rules reduced the daily limit for intraday short-selling orders from 30% to 3%, aiming to curb aggressive bearish trading.

Benzinga Edge Stock Rankings indicate that TSMC’s short-term price trend has turned negative, although its long-term trend remain strong. The stock ranks in the 97th percentile for Quality and the 71st percentile for Momentum.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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