{"id":73044,"date":"2026-10-15T02:08:12","date_gmt":"2026-10-15T06:08:12","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tsmc-hits-record-profit-as-global-ai-demand-surges-pernod-ricard-outperforms-despite-china-slump\/73044\/"},"modified":"2026-10-15T02:08:12","modified_gmt":"2026-10-15T06:08:12","slug":"tsmc-hits-record-profit-as-global-ai-demand-surges-pernod-ricard-outperforms-despite-china-slump","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tsmc-hits-record-profit-as-global-ai-demand-surges-pernod-ricard-outperforms-despite-china-slump\/73044\/","title":{"rendered":"TSMC Hits Record Profit as Global AI Demand Surges; Pernod Ricard Outperforms Despite China Slump"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>TSMC (<a href=\"\/stock\/TSM\">TSM<\/a>)<\/strong> reported a record <strong>T$763.1 billion<\/strong> ($23.59 billion) net profit for Q3, a <strong>69% year-over-year increase<\/strong> fueled by insatiable demand for AI processors.<\/li>\n<li><strong>Pernod Ricard (<a href=\"\/stock\/RI\">RI<\/a>)<\/strong> saw organic sales dip <strong>0.9%<\/strong> in Q1, a better-than-expected result despite a <strong>25% plunge in China<\/strong> and a <strong>10% decline in the U.S.<\/strong><\/li>\n<li><strong>Bank of Japan (BoJ)<\/strong> board member <strong>Junko Koeda<\/strong> signaled a hawkish shift, urging &quot;timely&quot; rate adjustments and noting that the neutral rate likely sits <strong>well above 1%<\/strong>.<\/li>\n<li><strong>Italy\u2019s<\/strong> government unveiled a plan to collect <strong>0.44% of GDP<\/strong> from the financial sector between 2027 and 2029 to fund its national budget.<\/li>\n<\/ul>\n<h2>Tech and AI: TSMC Sets New Benchmarks<\/h2>\n<p>Taiwan Semiconductor Manufacturing Co (<a href=\"\/stock\/TSM\">TSM<\/a>) smashed market expectations on Thursday, posting a record quarterly profit of <strong>T$763.1 billion<\/strong>. The <strong>69% surge<\/strong> in net income was driven by the global race for artificial intelligence, with major clients like <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) and Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>) ramping up orders for advanced 3nm and 5nm chips.<\/p>\n<p>The company&#39;s gross margin reached a staggering <strong>66.4%<\/strong>, reflecting its dominant position in the high-end foundry market. Management highlighted that <strong>AI-related demand<\/strong> remains the primary growth engine, offsetting broader cyclical weakness in personal electronics. <em>Analysts view these results as a bellwether for the tech sector, suggesting the AI infrastructure build-out shows no signs of slowing.<\/em><\/p>\n<h2>Consumer Goods: Pernod Ricard Navigates Regional Headwinds<\/h2>\n<p>French spirits giant Pernod Ricard (<a href=\"\/stock\/RI\">RI<\/a>) reported Q1 sales of <strong>\u20ac2,234 million<\/strong>, representing a narrow organic decline of <strong>0.9%<\/strong>. While the figure beat analyst estimates of a <strong>1.7% drop<\/strong>, the company continues to struggle in its two largest markets. Sales in <strong>China fell 25%<\/strong> due to macroeconomic weakness, while <strong>U.S. sales dropped 10%<\/strong> amid ongoing inventory adjustments.<\/p>\n<p>Conversely, the company saw a <strong>19% jump in India<\/strong>, which is emerging as a critical growth pillar. Pernod Ricard reiterated its full-year outlook, banking on a gradual recovery in the second half of the fiscal year. <em>The spirits industry remains under pressure as consumer sentiment in China remains fragile and U.S. retailers remain cautious with stock levels.<\/em><\/p>\n<h2>Central Banks: BoJ Prepares for Further Hikes<\/h2>\n<p>Bank of Japan board member <strong>Junko Koeda<\/strong> delivered a clear message to markets on Thursday, stating the central bank should not be &quot;overly cautious&quot; about raising interest rates. Koeda emphasized that <strong>upside price risks<\/strong>\u2014including geopolitical tensions and a weak yen\u2014necessitate appropriate policy adjustments.<\/p>\n<p>Koeda noted that Japan&#39;s <strong>neutral interest rate<\/strong> is likely significantly higher than the current <strong>1.25%<\/strong> policy rate, with some estimates placing it above <strong>2%<\/strong>. <em>This commentary suggests the BoJ is laying the groundwork for a rate hike as early as December or January, provided economic data remains supportive.<\/em><\/p>\n<h2>Fiscal Policy: Italy Targets Financial Sector for Revenue<\/h2>\n<p>Italy has detailed a plan to raise approximately <strong>\u20ac11 billion<\/strong> (0.44% of GDP) from banks and insurers over the 2027\u20132029 period. The draft budget indicates the contribution will be structured as a <strong>permanent levy<\/strong> rather than a one-off tax, with the highest impact of <strong>0.21% of GDP<\/strong> expected in 2027.<\/p>\n<p>The move is part of Prime Minister Giorgia Meloni\u2019s broader strategy to bring the national deficit below the <strong>EU\u2019s 3% ceiling<\/strong>. <em>While the measure aims to stabilize public finances, it has raised concerns among investors regarding the long-term profitability of the Italian banking sector.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways TSMC (TSM) reported a record T$763.1 billion ($23.59 billion) net profit for Q3, a 69% year-over-year increase fueled 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