TSMC Profits Hit Record Highs — Why Is AI Hardware Still Being Sold?

TSMC fell 1.80% and Nvidia dropped 1.84% despite TSMC beating quarterly estimates. Revenue reached NT$1.49 trillion, net profit hit NT$763.1 billion, and operating margin topped guidance at 58.7%. Bulls cite strong Q4 guidance and advanced-chip demand; bears warn that higher 2026–2028 capex could strain customer funding and AI returns. Should investors follow TSMC’s capacity execution and Nvidia orders, or wait for clearer capex payoffs?

avatarAdz5150
10-23 10:41

💡🤖 NVIDIA SPENT $4 BILLION SECURING AI OPTICS. I WANTED TO KNOW WHY

I started this rabbit hole looking at GPUs. Somehow I ended up researching zinc refineries. Welcome back to ADZ5150. 😂🐅 Everyone knows the AI arms race. NVIDIA GPUs. Hyperscaler capex. Gigawatt data centres. Power shortages. Memory. Cooling. But something caught my attention. In March, NVIDIA announced a US$2 billion investment in Lumentum. On the exact same day, it announced another US$2 billion investment in Coherent. US$4 BILLION. Not into another AI model. Not another GPU company. Into companies that make lasers and optical technology. And both agreements went beyond investments. They included multibillion-dollar purchase commitments and future access to manufacturing capacity. That made me ask the obvious GAZADZ question: 🐇 WHY DOES THE WORLD’S MOST IMPORTANT AI CHIP COMPANY CARE SO M
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💡🤖 NVIDIA SPENT $4 BILLION SECURING AI OPTICS. I WANTED TO KNOW WHY
avatarClaireck
10-19

Singapore Stocks Barely Fell — So Why Did 276 Stocks Drop? | SGX Market Close.

Singapore Stocks Barely Fell — So Why Did 276 Stocks Drop? | SGX Market Close. https://youtu.be/eirPcWWdsLU
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Singapore Stocks Barely Fell — So Why Did 276 Stocks Drop? | SGX Market Close.
avatarCanknee
10-19
Why is TSMC still trading so low
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avatarnerdbull1669
10-19

Silicon Paradox: Reconciling TSMC’s Record Highs with the AI Hardware Equity Sell-Off

Recent financial disclosures revealed a glaring dichotomy in the technology sector: TSMC delivered record-breaking quarterly net profits driven by insatiable demand for advanced 3nm and 5nm nodes, but we saw selloff last week from AI hardware names. In this article, we would like to look at the factors and catalysts that is contributing to this silicon paradox. 1. The Surface Paradox: Record Profits vs. Market Sell-Off When $Taiwan Semiconductor Manufacturing(TSM)$ reported its latest quarterly financial results, the figures exceeded even the most bullish consensus estimates. Gross margins expanded beyond key guidance thresholds, operating margins hit historical highs, and revenue derived from High-Performance Computing (HPC)—which encapsulates AI
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Silicon Paradox: Reconciling TSMC’s Record Highs with the AI Hardware Equity Sell-Off
avatarLanceljx
10-17
The strongest evidence would be sustained growth in AI-related revenue and free cash flow that outpaces the growth in AI capex. Revenue growth alone is not enough. Companies can generate more AI sales while spending even faster on GPUs, data centres and power. I would look for rising utilisation of AI infrastructure, improving operating margins and, ultimately, higher free cash flow and ROIC. If hyperscalers can show that each additional dollar of AI investment is producing growing incremental cash returns, the spending cycle becomes much easier to justify. For me, improving ROIC alongside accelerating free cash flow would be the clearest sign that AI capex is creating economic value rather than simply fuelling an expensive infrastructure race.
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avatarLanceljx
10-17
I would focus on TSMC’s capacity execution and Nvidia’s order trajectory rather than wait for perfect clarity on AI capex returns. TSMC’s strong revenue, profit and 58.7% operating margin suggest AI demand is still translating into real earnings, not merely investment promises. Higher capex is therefore not automatically bearish if new capacity remains highly utilised and generates attractive returns. The bigger risk is downstream. If hyperscalers keep spending heavily but AI monetisation fails to catch up, Nvidia orders could eventually weaken and TSMC’s new capacity could face lower utilisation. I would watch three signals closely: Nvidia order growth, TSMC advanced-node utilisation and hyperscaler AI returns. As long as all three remain healthy, the AI semiconductor thesis remains credi
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avatarhighhand
10-17
B. the party is just starting.
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avatarToNi
10-16
look tsla
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avatarKentzw
10-16
For me, it’s sustainable free cash flow growth. 💰 Revenue growth is encouraging, but AI companies need to show that the money invested in chips, data centres and power is generating real returns. Spending billions is easy to announce; proving it pays off is the real test. 📊
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avatarKentzw
10-16
🅲 I’d be selective. AI still has huge potential, but some stocks may have already priced in years of growth. TSMC’s strong earnings are encouraging, yet investors also need to watch rising costs and valuations. I’d rather own companies that can prove their growth through real profits than chase every stock riding the AI wave.
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avatarMarktomarket
10-16

TSMC Beat. The Dow Rallied. AI Hardware Still Fell.

The market: hotter producer prices moved money out of technology and into value sectors $SPDR S&P 500 ETF Trust(SPY)$ rose 0.28 per cent to US$771.79 on Thursday, while $Invesco QQQ(QQQ)$ fell 0.13 per cent to US$728.00. September PPI increased 1.3 per cent from the previous month, above the market's 0.6 per cent expectation and faster than August's 0.4 per cent rise. Wholesale inflation reached 6.3 per cent from a year earlier, with energy prices the main driver. Renewed upstream price pressure reduced expectations for rate cuts and highly valued technology shares. The broad market did not fall with technology because money moved towards financials, consumer companies an
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TSMC Beat. The Dow Rallied. AI Hardware Still Fell.
avatarKentzw
10-16

TSMC Beats Earnings, but AI Stocks Fall — The Real Test Is ROI

Record profits are impressive. Turning record investment into sustainable returns is the bigger challenge. TSMC just reported a record quarterly net profit of NT$763.1 billion, up 68.7% year over year. Revenue climbed 50.9% to NT$1.49 trillion, while operating margin reached 58.7%, beating guidance. The company also forecast Q4 revenue of US$52.3–54.3 billion. Yet TSMC and Nvidia shares fell.  Why the disconnect? 1. Strong demand is not the same as guaranteed returns. TSMC is benefiting from demand for advanced chips, but its customers must still justify the enormous cost of building AI infrastructure. If AI revenue grows more slowly than computing costs, spending plans could eventually be reconsidered. 2. The investment bill keeps rising. TSMC expects 2026 capital expenditure of US$60–64
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TSMC Beats Earnings, but AI Stocks Fall — The Real Test Is ROI
avatarD1ane
10-16
C — Strong AI demand doesn’t mean every AI stock is worth buying at any price. TSMC’s record profits and upbeat guidance show the demand is real, but rising capex, valuation risks and uncertainty over future returns matter too. I’d focus on companies that can turn AI spending into sustainable earnings and cash flow, rather than chasing the hype.
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avatarD1ane
10-16

🚨 TSMC Just Posted Record Profits. So Why Are AI Stocks Still Falling?

$Taiwan Semiconductor Manufacturing(TSM)$  delivered another blockbuster quarter. Yet TSMC and $NVIDIA (NVDA)$ fell as investors continued selling semiconductor stocks. If AI demand is so strong, why isn’t the market celebrating? 📊 1. The numbers are impressive TSMC’s third-quarter 2026 results showed just how powerful the AI chip boom has become: 🔥 Revenue reached NT$1.494 trillion, up 50.9% year over year. 🔥 Net profit hit NT$763.1 billion, up 68.7%. 🔥 Operating margin reached 58.7%. 🔥 Fourth-quarter revenue guidance came in at US$52.3–54.3 billion, above the previous quarter’s level. These aren’t the numbers of a business experiencing an obvious demand collapse. TSMC continues to benefit from demand for advanced chips used in AI infras
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🚨 TSMC Just Posted Record Profits. So Why Are AI Stocks Still Falling?
avatar苏36
10-16
🅲 It depends. I'd be more selective about which AI stocks I own. TSMC’s results reveal an important distinction: AI demand can remain strong while stocks deliver disappointing returns. Revenue surged 41%, profits hit a record, and fourth-quarter guidance exceeded expectations. Yet the stock fell. Investors now want proof that massive AI investments can generate sustainable returns. The risk isn't that AI demand disappears, but that expectations and valuations have risen so high that even excellent earnings may disappoint. AI infrastructure companies also face rising costs and uncertain returns. I'd favor businesses with strong cash flows, pricing power, and visible earnings growth over companies relying on debt and distant profit projections. My view: AI remains a long-term opportunity, bu
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avatarShyon
10-16
I would choose C. I believe AI demand is still strong, but the market is becoming more selective about valuations, profitability, and how much future growth is already priced in. TSMC delivered excellent results and raised its outlook, yet the stock still fell as investors questioned whether current AI spending levels are sustainable. For me, strong earnings alone are not enough. I want to see companies turn AI demand into sustainable revenue, earnings growth, and cash flow. Semiconductor companies may benefit from the long-term AI trend, but their valuations and execution risks differ, so I would not treat every AI stock equally. I will continue focusing on companies with solid fundamentals and long-term growth potential, while using pullbacks to accumulate gradually rather than chasing
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avatarTiger_Earnings
10-16

[Earnings Recap] TSMC Beats Again. Is the Bar Getting Too High?

TSMC delivered a clear beat-and-raise quarter but fell with the broader chip sector. Charles Schwab also declined as a small net-interest-margin miss overshadowed record asset gathering. After the bell, rising costs hit J.B. Hunt, while Interactive Brokers’ dividend increase failed to produce a rally. $Taiwan Semiconductor Manufacturing(TSM)$ lost 1.8% TSMC is the world’s largest contract chipmaker and manufactures advanced processors for Nvidia, Apple and other technology companies. Third-quarter revenue jumped 41% to $46.72 billion, beating the $45.67 billion consensus. EPS of $4.60 per ADR topped the $4.46 estimate, while net income surged 69% to a record NT$763.1 billion. Advanced nodes accounted for 79% of wafer revenue, including an 8% contri
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[Earnings Recap] TSMC Beats Again. Is the Bar Getting Too High?
avatarLanceljx
10-16
TSMC’s results make me reluctant to cut semiconductor exposure after the sell-off. Record profit and strong guidance suggest the underlying AI chip demand story remains intact, even if valuations and higher rates are creating much more volatility. Among the choices, I would favour Nvidia first. TSMC’s strong leading-edge demand supports the view that AI accelerator spending has not collapsed. AMD is worth watching, but I would want clearer evidence that its order growth and market-share gains are translating into sustained earnings before becoming more aggressive. The bigger caution is SOXL. A 13% one-day fall shows how quickly 3x leverage can punish investors when semiconductor sentiment turns. Even if the long-term AI thesis remains intact, leveraged ETFs add another layer of timing risk
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avatarnerdbull1669
10-16

Anatomy of a Leveraged Semiconductor Selloff: Key Drivers Behind SOXL’s De-Risking and Potential Catalysts for Recovery

A single-day plunge of ~13% in the Direxion Daily Semiconductor Bull 3X Shares (SOXL) illustrates the extreme structural amplification inherent in 3x daily leveraged ETFs. While major anchor components like Taiwan Semiconductor Manufacturing Company (TSMC) may exhibit operational resilience, strong fundamentals alone cannot insulate the semiconductor sector during systemic market pullbacks. In this article, we would like to discuss what are the key drivers behind SOXL’s de-risking and potential catalysts for recovery. 1. The Leverage Architecture: Unpacking a 13% Single-Day Decline To comprehend a severe ~13% daily decline in SOXL, one must first dissect the structural mechanics of the underlying exchange-traded product. SOXL aims to deliver 300% (3x) of the single-day price performance of
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Anatomy of a Leveraged Semiconductor Selloff: Key Drivers Behind SOXL’s De-Risking and Potential Catalysts for Recovery
avatarPawsAndProfits
10-16

Start of a bloodbath? Or just a false alarm?

Disclaimer: Nothing I say or post should be considered financial advice. Please do your own due diligence before making any investment decisions.‌ $Technology Select Sector SPDR Fund(XLK)$ $Roundhill Memory ETF(DRAM)$ $VanEck Semiconductor ETF(SMH)$ $Utilities Select Sector SPDR Fund(XLU)$ $Communication Services Select Sector SPDR Fund(XLC)$ So the real bloothbath finally started today, with 80 billion dollars wiped out from the AI sector in a single day. The sector did bounce back a little towards end of trading day, but could this be a start of a bearish momentum carrying into en
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Start of a bloodbath? Or just a false alarm?