Taiwan Semiconductor Manufacturing Co. booked a 66.4% gross margin. CoreWeave's bonds yield 15% to 16%, and its credit default swaps imply a 63% five-year default probability. The profit sits at the top of the chain and the leverage at the bottom.
TSMC chief C.C. Wei said 2027 capacity planning is being kept prudent even as leading-edge demand still outruns supply after a sixth straight record quarter. Source
Taiwan Semiconductor Manufacturing Co. (TSMC) booked a 66.4% gross margin in the third quarter. In the same week, the bonds of one of the biggest buyers of its chips were trading at yields of 15% to 16%. Same buildout, opposite ends of it. The profits sit where nobody needs a lender, and the leverage sits several steps downstream.
