:max_bytes(150000):strip_icc()/GettyImages-2218382315-36f4b91190e54c2fba5022aff7e9bcff.jpg "TSMC’s Results Add Another Feather in the Hat of AI Bulls—What You Need to Know")
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Key Takeaways
- Taiwan Semiconductor Manufacturing Co. reported record quarterly earnings that topped analysts’ estimates.
- Shares of TSMC climbed to an all-time high Thursday following the news, before paring the early-session gains.
Taiwan Semiconductor Manufacturing Co. (TSM) posted record earnings and lifted its outlook, in what could be taken as another strong signal of AI demand.
The world’s largest chip manufacturer posted earnings per share of $2.92 on revenue that surged 41% year-over-year to $33.10 billion in the third quarter, topping analysts’ estimates compiled by Visible Alpha.
TSMC CEO C.C. Wei pointed to “robust” AI-related demand for the growth, telling investors on Thursday’s earnings call that “conviction in the AI megatrend is strengthening and we believe that demand for semiconductors will continue to be very fundamental,” according to a transcript provided by AlphaSense.
Why This Matters for Investors
Results from TSMC, which makes chips for many of the biggest names in AI chip design like Nvidia and AMD, can be taken as an early sign of robust orders and demand for their AI chips, adding another feather in the hat of AI trade bulls.
TSMC said it sees fourth-quarter revenue of between $32.2 billion and $33.4 billion, and boosted its 2025 revenue growth forecast to the mid-30% range, up from its previous projection of about 30%.
Shares of TSMC climbed to a record high Thursday morning following the news before paring their early gains. The stock has added over 50% in 2025 so far.
