TSMC’s Q3 financial report will be released on October 15, and 95% of Wall Street analysts are optimistic about buying.

TSMC is firmly the world's leader in wafer foundry, and its stock price has performed well. (File photo)

[Financial Channel/Comprehensive Report] TSMC will announce its third-quarter financial results and hold a press conference on October 15, and its operating outlook has attracted much attention. Foreign media directly call TSMC an "AI gatekeeper" with competitive advantages. Although TSMC's ADR stock price has soared by more than 50% this year, 95% of analysts on Wall Street still give it a buy rating. As for TSMC’s stock price listed on the Taiwan Stock Exchange, it has increased by more than 60% so far this year, which is an outstanding performance.

Huida and Micron have jumped on the AI ​​wave, and their performance and stock prices have been impressive in recent years. However, "The Motley Fool" pointed out that there is an indispensable key role behind both companies - TSMC, and even described TSMC as the "gatekeeper" of this AI boom.

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The report pointed out that TSMC has a dominant position in the field of advanced AI semiconductor manufacturing, and its main customers include technology giants such as Huida, Apple, Broadcom, Advanced Micro Devices (AMD) and Amazon. Huida, the largest customer alone, may contribute approximately US$33 billion in revenue to TSMC in 2026.

For Huida, TSMC’s advanced process capabilities are crucial to produce a large number of advanced AI chips at the current speed and scale. Although Micron produces its own memory chips, it also works closely with TSMC for next-generation high-bandwidth memory (HBM). Micron utilizes TSMC's CoWoS advanced packaging technology and cooperates with TSMC to produce the Base Die (basic die) required for HBM to support the new generation of AI computing architecture.

AI demand also continues to be reflected in TSMC’s financial reports. In the latest quarter, revenue increased by 34% year-on-year, earnings per share (EPS) increased by 77%, and advanced manufacturing processes accounted for 77% of revenue. The company estimates that revenue in the third quarter will be approximately US$45 billion, an increase of 12% from the second quarter.

Although TSMC's ADR stock price has soared more than 50% this year and 67% in the past 12 months, Wall Street is still generally optimistic about the market outlook.

The report pointed out that among analysts tracking TSMC, as many as 95% gave it a "buy" rating. The average target price of TSMC's ADR is US$535. Based on the closing price on Friday (2nd), there is still about 13% room for growth.

As for TSMC’s stock price traded on the stock exchange, the closing price on the 2nd was 2,500 yuan, an increase of more than 60% since the beginning of this year. TSMC will announce its third-quarter financial results and hold a press conference on October 15. AI demand and operational outlook have attracted much attention.

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