Shares of Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) traded higher today after the chipmaker posted record third-quarter results and raised its full-year 2025 revenue growth outlook to the mid-30% range in US-dollar terms, up from about 30%, citing stronger-than-expected demand for AI chips, Reuters reported.
In its earnings release, TSMC said Q3 revenue was NT$989.92 billion (about US$33.10b), with net income of NT$452.30 billion and diluted EPS of NT$17.44 (US$2.92 per ADR unit). The company guided fourth-quarter revenue to US$32.2–$33.4b, and reported a gross margin of 59.5%. Advanced technologies (7-nm and below) accounted for 74% of wafer revenue, including 23% from 3-nm and 37% from 5-nm, the company said in a press release.
'Very strong signals from our customers’
“AI demand actually continues to be very strong, more strong than we thought three months ago,” Chair and CEO C.C. Wei told analysts on the earnings call, adding that TSMC is getting “very strong signals from our customers’ customers requesting the capacity to support their business."
Outside analysts underscored that backdrop. “Demand for TSMC’s products is unyielding,” Morningstar wrote in a note cited by the Associated Press, pointing to the foundry’s role supplying leading customers such as Apple and Nvidia.
TSMC also kept its 2025 capital-expenditure plan at up to US$42b as it ramps leading-edge capacity to meet AI-related orders.