TSMC reported record profits and beat forecast thanks to demand for AI chips
The largest chip maker's quarterly sales were also the highest on record
The world's largest contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC) reported record sales and profits for the third quarter of 2025. In addition to the AI boom, Apple's new product launches contributed to TSMC's strong earnings.
Details
TSMC reported that its net profit soared 39.1% year-on-year to NT$452.3 billion ($15.1 billion) in the July-September period. Revenue rose 30% to NT$989.9 billion ($32.3 billion). Both figures were record highs for the company.
LSEG's consensus forecast suggested that TSMC's net profit would amount to NT$417.7 billion ($13.6 billion), and revenue - NT$977.5 billion ($31.9 billion), CNBC reports.
The report was published after the end of trading in Taipei. TSMC's quotations jumped by almost 3% in over-the-counter trading on the U.S. Blue Ocean ATS.
What the analysts are saying
"Some negative effect" from factors such as trade barriers or a weakening economy has not yet manifested itself, suggesting TSMC's stable short-term position and a controlled level of external risks, Nikkei Asia quoted Macquarie analyst Arthur Lai as saying. The Taiwanese company's prospects are improving as customers switch to more advanced process technologies, which will allow it to charge higher prices for its products, Lai added.
According to FactSet, Wall Street analysts almost unanimously recommend buying TSMC stock - it has 45 Buy and Overweight ratings out of 47.
Context
TSMC shares are up more than 50% in 2025 amid investor optimism about demand for the company's products. Its major customers - Nvidia, AMD and Broadcom - have signed multi-year agreements with major AI service providers such as OpenAI and Oracle to expand data center capacity.
In addition to the AI boom, TSMC's financial results were also affected by product line updates from Apple, another key customer. The latest iPhone, iPad and MacBook models have boosted chip orders, Nikkei Asia notes.
U.S. chip equipment maker Applied Materials said it sees no signs of a slowdown in AI-related demand. European lithography equipment leader ASML, an important supplier to TSMC, said on Oct. 15 that it does not expect revenue to decline in 2026 despite a slowdown in demand in China.
This article was AI-translated and verified by a human editor
