TSMC Extends Record Run With Strong Q3 and Upbeat 2025 Outlook

Taiwan Semiconductor Manufacturing Company (NYSE: TSM) gained 2.92% to $310.70 in early Thursday trading after reporting another record quarterly profit and raising its 2025 sales growth forecast to approximately 35%, up from prior guidance of around 30%.

The world’s largest contract chipmaker said net profit rose 39% year-over-year to NT$452.3 billion (~$14.8 billion USD), with diluted EPS increasing 39% to NT$17.44, about 10% above Wall Street estimates, according to Bloomberg.

Guidance Boost Driven by AI Momentum

Chief Financial Officer Wendell Huang said,

“Moving into the fourth quarter of 2025, we expect our business to be supported by continued strong demand for our leading-edge process technologies.”

The company now forecasts Q4 revenue between $32.2 billion and $33.4 billion USD, reflecting accelerating demand for high-performance AI chips and advanced nodes used in data center buildouts.

TSMC’s management also reaffirmed that AI-related demand “continues to be very strong, stronger than we thought three months ago,” signaling sustained tailwinds through 2026.

AI Boom Powers Semiconductor Growth

TSMC’s stock is up nearly 40% year-to-date, driven by relentless demand from hyperscalers like Nvidia (NVDA), AMD (AMD), and Apple (AAPL), all of which rely on TSMC’s cutting-edge foundry capacity for AI and high-performance computing chips.

Geopolitical and Supply Chain Headwinds

Despite the upbeat forecast, the company acknowledged that trade and tariff issues remain a risk, with Taiwan negotiating a 20% tariff on U.S.-bound goods, while China’s restrictions on rare earth exports and U.S.-China chip tensions continue to complicate global supply chains.

Nevertheless, TSMC executives expressed confidence that the company’s technological leadership and diversified customer base will sustain growth.