TSMC will release its third quarter financial report. Analysts: It will affect the stock prices of AI giants such as Huida.

TSMC, the world's largest wafer foundry, will release its third-quarter financial report on October 15. Keith Drew, a technology stock analyst at the American investment media "The Motley Fool" Drury wrote that since the chips designed by Nvidia, Broadcom and AMD are almost all produced by TSMC, the content of TSMC’s financial reports will have a significant impact on the stock prices of these three companies or other artificial intelligence (AI) infrastructure-related companies.

TSMC is the world's largest wafer foundry manufacturer and has the world's most advanced technology. After semiconductor manufacturers such as Huida, Broadcom and AMD design logic chips, they will be produced by TSMC. Statistics from TrendForce show that TSMC’s global foundry market share reached 72.5% in the second quarter of this year. Therefore, investing in TSMC is the best way to participate in the AI ​​competition. There is no need to choose the final winner among the many AI technology developers. As long as expenditures in the field of AI hardware continue to increase, TSMC will always be the most ideal investment target.

Investors have been informed in advance of part of TSMC's third-quarter financial report to be released on October 15, as the company regularly provides investors with monthly revenue data. TSMC's revenue increased by 45% in July and 53% in August. If it maintains a similar growth rate in September, it can easily achieve the 47% quarterly revenue growth target expected by Wall Street analysts.

However, investors are not too worried about TSMC's performance in 2026 because the company has previously given bright forecasts. Most investors prefer that TSMC can reveal some information about its expected performance in 2027, as Huida did last quarter. Huida said at the time that due to the huge demand for AI, revenue was expected to grow by 70% in the next fiscal year.

If TSMC expects strong growth prospects in 2027, it will greatly boost the company's stock price. If TSMC chooses to raise prices, it will also help its stock price rise. There are previous market rumors that companies such as AMD are increasing prices, which may mean that they are charged higher fees by partners such as TSMC. Due to TSMC's huge scale and production capacity, companies such as Huida, Broadcom and AMD have no choice but to rely on TSMC's foundry services.

Drewry said that after TSMC releases its third-quarter financial report on October 15, if it announces a price increase, it may push up the company's stock price. But for TSMC's stock price to rise sharply, it also needs performance that far exceeds expectations, because the company's current valuation is already quite reasonable.