Analysis: What TSMC’s Q3 Earnings Reveal About the AI Boom – TaiwanPlus

TSMC is expanding its chipmaking capacity as demand for artificial intelligence accelerators drives growth, with one analyst saying the company could double its revenue by 2029. Dan Nystedt of TriOrient Investments says TSMC’s stronger revenue outlook and higher capital spending reflect confidence in the AI boom. The company is adding manufacturing capacity for its 3nm chips and expects its 2nm capacity to double in 2027. Nystedt says overseas expansion, including US factories, is weighing on gross margins alongside the costs of developing new chip technologies. But he believes TSMC is running ahead of its earlier growth targets as demand for advanced chips continues to rise.