Taiwan Semiconductor Manufacturing Company (TSMC) has announced a 30% year-on-year rise in third-quarter revenue, surpassing market expectations as demand for its products surged amid growing interest in artificial intelligence applications.
Revenue for July to September reached T$989.92 billion ($32.47 billion), up from T$759.69 billion in the same period last year, and exceeding an LSEG SmartEstimate of T$973.26 billion based on 22 analysts’ forecasts. The figure also sits near the mid-point of guidance issued by TSMC in July, which projected $31.8 billion to $33 billion in sales. TSMC provides its guidance in US dollars.
The company, whose clients include NVIDIA and Apple, has benefited from strong AI-driven chip demand, offsetting a slowdown in pandemic-era sales of consumer electronics components such as tablet chips. Shares listed in Taipei have risen 34% so far this year, compared with an 18.5% gain in the broader market index (.TWII).
TSMC’s September sales alone reached 331 billion New Taiwan dollars ($10.9 billion), exceeding analyst expectations of around 302 billion New Taiwan dollars. This represented a 31.4% increase year-on-year, although revenue fell 1.4% from August. Following the report, TSMC’s stock closed down 1.5% at 299.88, while its US shares had previously climbed to 304.52, slightly below the recent record of 307.30.
The chipmaker is scheduled to release its full third-quarter results, including updated guidance for the current quarter and full year, on 16/10/2025. Analysts anticipate earnings of $2.62 per share on sales of $32.07 billion, translating to 34% year-on-year growth in earnings and 36% in revenue.
Wedbush Securities analyst Matt Bryson noted: “TSMC appears to be firing on all cylinders,” citing ongoing AI chip growth, expected price increases, and a rebound in PC sales as drivers for higher sales and earnings forecasts. Bryson rates TSM stock as outperform.
The company, which produces chips for industry leaders such as NVIDIA, AMD, Apple, and Broadcom, has seen particular strength in advanced processors for AI applications. TSM stock features on three IBD lists – IBD 50, Global Leaders, and Tech Leaders – and holds the highest IBD Composite Rating of 99.
