TSMC's Q3 Revenue Soars Amid AI Boom, Fueling Record Growth and Market Rally

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Taiwan Semiconductor Manufacturing Co (TSMC) reports a 30% year-on-year increase in Q3 revenue, beating market forecasts. The surge is attributed to growing demand for AI chips, benefiting TSMC and its key clients like Nvidia and AMD.

TSMC's Record-Breaking Q3 Performance

Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker, has reported a remarkable 30% year-on-year increase in third-quarter revenue, surpassing market expectations

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. The company's revenue for July-September reached T$989.92 billion ($32.47 billion), comfortably exceeding the LSEG SmartEstimate of T$973.26 billion

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Source: Benzinga

Source: Benzinga

AI Boom Fuels Growth

The surge in TSMC's performance is largely attributed to the growing demand for artificial intelligence (AI) applications. As a key supplier to industry giants like Nvidia and Apple, TSMC has been a major beneficiary of the AI revolution

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. Experts suggest that many organizations are actively investing in AI infrastructure, cloud computing, and high-performance chips, driving the demand for TSMC's advanced semiconductor products

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Source: Analytics Insight

Source: Analytics Insight

Market Rally and Stock Performance

The positive financial results have had a significant impact on TSMC's stock performance. The company's shares have gained 34% so far this year, outperforming the broader market

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. On October 9, 2025, TSMC's stock surged past its 52-week high, reaching T$1,440 (US$47.22)

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Strategic Partnerships Driving Growth

TSMC's growth is further bolstered by strategic partnerships in the AI sector. A landmark agreement between Advanced Micro Devices (AMD) and OpenAI to supply up to 6 gigawatts of AMD Instinct GPUs has indirectly benefited TSMC, as it manufactures chips for AMD

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. Similarly, Nvidia's $100 billion partnership with OpenAI for AI data centers has also contributed to TSMC's positive outlook

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Future Outlook

Analysts remain optimistic about TSMC's future prospects. Citi analysts suggest that TSMC's 2025 revenue could exceed the already elevated full-year guidance of 30% growth in U.S. dollar terms, driven by rising AI demand

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. Mario Morales from research firm IDC predicts that TSMC will likely continue to grow faster than its competitors due to its central role in the AI supply chain

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As the AI arms race intensifies among tech giants, TSMC's dominance in advanced chip manufacturing and packaging positions it as one of the biggest beneficiaries of increased AI spending by tech companies

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. The company is set to report its full third-quarter earnings on October 16, which will provide further insights into its performance and future outlook

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