---
title: "Alchip's revenue jumps 516% to a record TWD 10.3 billion on custom AI chips, but profit grows half as fast"
description: "Alchip's monthly numbers are the cleanest public read on whether the hyperscaler shift from Nvidia's GPUs to custom silicon is turning into money. Revenue is turning; profit is not keeping pace, and holders of Taipei-listed ticker 3661 are the ones exposed to the difference."
publisher: "The Inference"
section: "Chips"
published: 2026-11-12T14:05:26.033Z
modified: 2026-11-12T14:05:26.033Z
canonical: https://theinference.org/article/alchip-s-revenue-jumps-516-to-a-record-twd-10-3-billion-on-custom-ai-chips-but-profit-grows-half-as-fast
language: en
keywords: "Chips, Earnings, AI Chips, Custom Silicon, Taiwan"
---

# Alchip's revenue jumps 516% to a record TWD 10.3 billion on custom AI chips, but profit grows half as fast

> Alchip's monthly numbers are the cleanest public read on whether the hyperscaler shift from Nvidia's GPUs to custom silicon is turning into money. Revenue is turning; profit is not keeping pace, and holders of Taipei-listed ticker 3661 are the ones exposed to the difference.

[Alchip Technologies](https://theinference.org/markets/companies/alchip-technologies) just turned the custom-chip argument into booked revenue. The Taipei-listed designer of application-specific chips, the ASICs cloud providers commission for their own workloads instead of buying [Nvidia](https://theinference.org/markets/companies/nvidia)'s general-purpose GPUs, [reported October revenue of TWD 10.3 billion](https://www.ad-hoc-news.de/boerse/news/nebenwerte/alchip-technologies-aktie-oktober-umsatz-steigt-um-515-81-prozent/70495377), up 515.81% year on year and [the strongest month in its history](https://theinference.org/article/alchip-s-september-revenue-jumped-496-to-nt-9-98-billion-more-than-its-entire-last-quarter), on 3-nanometer AI accelerator projects for US cloud providers [1]. The catch sits in the quarter behind it: profit grew half as fast as sales.

## Cloud providers' custom-chip plans are now Alchip's shipping volume

Cloud providers want accelerators tuned to their own workloads and owned outright, the case [Marvell](https://theinference.org/markets/companies/marvell) chief executive Matt Murphy pressed [at his investor day](https://247wallst.com/investing/2026/10/06/marvell-rallies-6-as-investor-day-presses-the-custom-ai-silicon-case-broadcom-advances-4/), and each program still has to beat Nvidia's merchant hardware on cost and performance [2]. All four big US providers, [Alphabet](https://theinference.org/markets/companies/alphabet), [Amazon](https://theinference.org/markets/companies/amazon), [Meta](https://theinference.org/markets/companies/meta) and [Microsoft](https://theinference.org/markets/companies/microsoft), are funding their own silicon [3].

Alchip turns those plans into shipping chips: its N3 accelerator entered production in May, began shipping in June, and October's record took ten-month revenue to TWD 48.1 billion, up 72.62% [1][4]. Chairman and CEO Johnny Shyang-Lin Shen promises another record this quarter and triple-digit growth in 2027, on existing projects plus one newly landed customer [1].

Alchip's whole of 2025 brought in under a billion US dollars [5]; the third quarter alone came close [6]. Marvell and [Broadcom](https://theinference.org/markets/companies/broadcom) fold the same custom work into far larger businesses [2][3], which is why Alchip's monthly prints are the purest public telemetry this shift has.

## The production mix thins Alchip's cut

The third quarter puts numbers on the gap [6].

*Chart: **Alchip's record quarter outran its profit: sales up nearly 4x, net income up 2.4x** Column chart of Alchip's third-quarter sales and net income for 2025 and 2026, in millions of new Taiwan dollars: sales rose from 6,569.86 to 26,050.94 and net income from 1,327.91 to 3,251.06*

*Reported results for the quarter ended September 30, in millions of new Taiwan dollars. Net margin fell to 12.5% from 20.2% a year earlier. Source: MarketScreener earnings summary. [6]*

Alchip kept roughly one dollar in eight of sales as profit, against one in five a year earlier [6]. The likely cause is mix: production services, where Alchip buys wafers, packaging and testing for customers, carry a thinner spread than design work, and the coverage of [these results](https://www.marketscreener.com/news/alchip-technologies-limited-reports-earnings-results-for-the-third-quarter-and-nine-months-ended-se-ce785edbdc8dff2d) flags the production share as the open margin question [1]. In the quarter before the ramp, gross margin ran 35% [4]. The customers are not named.

## The margin verdict arrives early in 2027

The street already leans bullish: thirteen analysts average a TWD 5,824 one-year target against a 3,180 price on November 5 [7]. December's and January's monthly prints arrive first but carry revenue only; margin shows up in the quarterly report, and on the cadence Q3 set this week, the Q4 verdict lands early in 2027 [7].

If net margin holds as production scales, Alchip earns a durable cut of a custom-chip market analysts at the research firm Bernstein size at $250–300 billion by 2028 [8]. If it keeps sliding, the value pools with the foundry and the cloud buyer, and the ramp is volume without profit.

## The demand is settled; the designer's fee is not

Nvidia, Marvell and Broadcom holders should read these prints the same way: demand for owned silicon is broadening, down to MediaTek, the Taiwanese chip designer that built modules for Google's Tensor Processing Units and is near a deal with [ByteDance](https://theinference.org/markets/companies/bytedance) [8]. The demand side of this shift is settled. Whether the design partner gets paid for it is [what the Q4 report tests](https://www.msn.com/en-us/technology/tech-companies/bytedance-asic-deal-nvidia-funds-chips-us-export-controls-meant-to-block/ar-AA2elTXD) [8].

## Takeaway

Alchip's October revenue hit a record TWD 10.3 billion on custom AI accelerators, but its third-quarter net margin fell to 12.5% from 20.2% a year earlier, and the quarterly report due early in 2027 is where the margin question gets answered.

## Sources

1. [ad-hoc-news.de (citing Taiwan News), "Alchip Technologies-Aktie: Oktober-Umsatz steigt um 515,81 Prozent", 12 November 2026](https://www.ad-hoc-news.de/boerse/news/nebenwerte/alchip-technologies-aktie-oktober-umsatz-steigt-um-515-81-prozent/70495377)
2. [24/7 Wall St, "Marvell Rallies 6% as Investor Day Presses the Custom AI Silicon Case; Broadcom Advances 4%", 6 October 2026](https://247wallst.com/investing/2026/10/06/marvell-rallies-6-as-investor-day-presses-the-custom-ai-silicon-case-broadcom-advances-4/)
3. [The Motley Fool, "Not Nvidia. Not AMD. This Custom AI Chip Designer Could Outperform Both by 2030.", 29 October 2026](https://www.fool.com/investing/2026/10/29/not-nvidia-not-amd-this-custom-ai-chip-designer-co/)
4. [ad-hoc-news.de (citing TrendForce), "Alchip reports TWD 9.98 billion revenue", 21 October 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/alchip-reports-twd-9-98-billion-revenue-alchip-technologies-stock-is-valued-at-twd-318-0-billion/70381155)
5. [ad-hoc-news.de, "Alchip Technologies stock reflects TWD 7.64 billion Q2 revenue decline", 9 October 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/alchip-technologies-stock-reflects-twd-7-64-billion-q2-revenue-decline/70276207)
6. [MarketScreener, "Alchip Technologies, Limited Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2026", 11 November 2026](https://www.marketscreener.com/news/alchip-technologies-limited-reports-earnings-results-for-the-third-quarter-and-nine-months-ended-se-ce785edbdc8dff2d)
7. [GuruFocus via Yahoo Finance, "Earnings To Watch: Alchip Technologies Ltd (TPE:3661) Q3 2026", 5 November 2026](https://finance.yahoo.com/markets/stocks/articles/earnings-watch-alchip-technologies-ltd-122118305.html)
8. [Tech Times via MSN, "ByteDance ASIC Deal: Nvidia Funds Chips US Export Controls Meant to Block", 15 October 2026](https://www.msn.com/en-us/technology/tech-companies/bytedance-asic-deal-nvidia-funds-chips-us-export-controls-meant-to-block/ar-AA2elTXD)


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Alchip's revenue jumps 516% to a record TWD 10.3 billion on custom AI chips, but profit grows half as fast — The Inference. Canonical: https://theinference.org/article/alchip-s-revenue-jumps-516-to-a-record-twd-10-3-billion-on-custom-ai-chips-but-profit-grows-half-as-fast