Micron Investors - TSMC Just Changed the Story!

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The analysis focuses on the semiconductor industry's resilience and growth prospects, particularly highlighting TSMC's strong financial performance and future outlook. TSMC reported record Q3 earnings, exceeding expectations with a 50% year-over-year revenue surge and 68.7% net profit increase. The company's growth streak continues for six consecutive quarters, driven by demand in data center and AI applications. Advanced manufacturing nodes (7nm and below) are crucial, accounting for 79% of total wafer revenue, with the 2nm process gaining momentum and reaching 8% of wafer revenue in 3Q26. TSMC forecasts a gross margin of 65%-67% and an operating margin of 56.5%-56.8%, with the rapid expansion of 2nm production outweighing margin pressures. Furthermore, TSMC reiterated its 2026 capital expenditure guidance of US$89 billion-US$94 billion, signaling confidence in sustained growth fueled by AI. Meanwhile, key players like Micron, SK Hynix, Samsung, and Apple are showing strong performance. Micron's memory prices are expected to rise 15%-20% in Q4, with NAND up 20% and high-bandwidth memory prices up 80% to 100% in Q1 2025, indicating sustained demand. The article also notes a significant investment from Japan into GlobalFoundries' US operations, highlighting the global expansion and importance of the semiconductor supply chain.

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