Lyon released a report saying that TSMC's third-quarter results beat expectations. Although it is not surprising, the macro clarity was welcomed by the market. The bank maintains a “High Confidence to Outperform the Market” rating and a target price of NT$3,700, based on the 2027 profit ratio of 25 times the price-earnings ratio. According to the bank, TSMC's profit per share for the third quarter was NT$29.43, higher than the bank's estimate of NT$28.6; revenue increased 50.9% year over year to NT$1.494 trillion, with a gross profit margin of 66.4%, in line with the bank's estimate. The company said demand is extremely strong, showing no signs of slowing down, and suggests there is room for an increase of 50% in the assessment of the compound annual growth rate of AI demand. TSMC maintains its 2026 full-year capital expenditure guidance of US$6 billion to US$6.4 billion; the bank's current benchmark forecasts capital expenditure of US$80 billion in 2027 and US$90 billion in 2028, both of which have upward risks.

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