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

TSMC posts forecast-beating Q3 revenue surge on AI boom

TAIPEI, Oct 9 (Reuters) - TSMC, the world's largest contract chipmaker, reported on Thursday third-quarter revenue rose 30% year-on-year, beating the market forecast, as demand for the company's products leapt on surging interest in artificial intelligence applications. Revenue for July-September came in at T$989.92 billion ($32.47 billion), according to Reuters calculations, compared with T$759.69 billion in the year ago period. The latest result handily topped an LSEG SmartEstimate of T$973.26 billion drawn from 22 analysts, and was in the mid-point of guidance of $31.8 billion to $33 billion issued by TSMC in July in its last earnings call. TSMC only gives guidance in U.S. dollars. TSMC (2330.TW), opens new tab will report full third-quarter earnings on October 16, including an updated outlook for the current quarter and full year. The company, whose customers include Nvidia (NVDA.O), opens new tab and Apple (AAPL.O), opens new tab, has been a major beneficiary of advances in AI, which has more than offset the tapering off of pandemic-led demand for chips used in consumer electronics like tablets. TSMC's Taipei-listed shares have gained 34% so far this year, compared with an 18.5% rise for the broader market (.TWII), opens new tab. Taiwan's Foxconn (2317.TW), opens new tab, the world's largest contract electronics maker and Nvidia's biggest server maker, has also reported bumper sales, logging its highest-ever revenue for the third quarter. ($1 = 30.4880 Taiwan dollars) Reporting by Ben Blanchard and Faith Hung; Editing by Jamie Freed and Muralikumar Anantharaman Our Standards: The Thomson Reuters Trust Principles., opens new tab

Taiwan Semiconductor Surges Past 52-Week High As AI Boom Fuels Record Market Rally - Taiwan Semiconductor (NYSE:TSM)

Taiwan Semiconductor Manufacturing Co (NYSE:TSM) topped its 52-week high of $196.72 on Monday as the continued artificial intelligence frenzy spurred investor optimism. Key client Advanced Micro Devices (NASDAQ:AMD) announced a landmark agreement with OpenAI to supply up to 6 gigawatts of AMD Instinct GPUs to power the AI leader's next-generation infrastructure. The rollout is scheduled to begin in the second half of 2026 with a 1-gigawatt deployment of MI450 GPUs, followed by multi-phase expansions across future AMD data center chip generations. Also Read: Why This Investor Is Trimming His Largest Holding Taiwan Semiconductor CFO Jean Hu said the agreement could generate "tens of billions of dollars in revenue" and be "highly accretive" to earnings. AMD shares climbed 33.6% to $219.99, surpassing their 52-week high of $186.65. The deal follows Nvidia's (NASDAQ:NVDA) $100 billion partnership with OpenAI to deploy at least 10 gigawatts of Vera Rubin systems starting in 2026. Nvidia is also a key client of Taiwan Semiconductor. The Taiwanese contract chipmaker also led a record rally in Taiwan's stock market on Monday, as surging enthusiasm for AI development pushed the TAIEX to fresh highs. Analysts said investors viewed Taiwan Semiconductor as attractively valued compared with U.S. chipmaker Nvidia (NASDAQ:NVDA), whose stock has soared on booming AI demand. Hua Nan Securities analyst Kevin Su told the Taipei Times that Taiwan Semiconductor's rally reflected investors' belief that it remains central to the global AI supply chain as the world's largest contract chipmaker producing Nvidia's advanced processors. The buying spree extended to other prominent semiconductor names. Su noted that investors are watching for new signals from Washington as the U.S. prepares to release September's nonfarm payroll data, which could influence the Federal Reserve's next moves on interest rate cuts. Price Action: TSM stock was trading 4.69% higher at $305.90 as of last check on Monday. Read Next: Taiwan Keeps Chip Edge While Eyeing US Deal Photo: Shutterstock TSMTaiwan Semiconductor Manufacturing Co Ltd$303.153.75%OverviewAMDAdvanced Micro Devices Inc$208.5926.7%NVDANVIDIA Corp$185.28-1.25%Market News and Data brought to you by Benzinga APIs

TSMC's Q3 Profit Could Hit $13.5B as AI Chip Demand Fuels Record Growth

TSMC reported a revenue of approximately TWD $990 billion ($32.47 billion) this quarter. This is more than most analysts expected. Customers like NVIDIA and Apple rely on TSMC for advanced , which explains the strong growth. AI technology is driving the boom. Experts say many organizations are actively spending on building AI infrastructure, cloud computing, and high-performance chips. According to Mario Morales from research firm IDC, TSMC will likely continue to grow faster than its competitors because of AI.

TSMC Shares Notch New Record After OpenAI, AMD Deal

Taiwan Semiconductor Manufacturing's shares touched a new high as a multibillion-dollar partnership between OpenAI and Advanced Micro Devices on AI data centers has fueled expectations of stronger demand along the entire semiconductor supply chain. Shares of the world's largest contract chip maker rose 2.9% to a new intraday record of 1,440 New Taiwan dollars, equivalent to US$47.22, on Tuesday. OpenAI has committed to deploying 6 gigawatts of computing capacity using AMD's graphics processing units over the next few years, the companies said Monday. The deal comes after Nvidia's $100 billion investment into the ChatGPT maker, which will allow OpenAI to build and deploy at least 10 gigawatts of Nvidia systems for its AI data centers. OpenAI has also signed a $300 billion deal with Oracle to purchase another 4.5 gigawatts of cloud-computing power. "This is yet another validation sign that the AI arms race is heating up among Big Tech firms with AMD now joining the AI party," Wedbush analysts said in a note, adding that this AI spending cycle is still in an early stage. Citi analysts said the AMD announcement helps boost the entire semiconductor sector with increased demand and multiples. TSMC's dominance in advanced chip manufacturing and packaging makes it one of the biggest beneficiaries of increased AI spending by tech companies. The Taiwanese chip maker's 2025 revenue could beat already-lifted full-year guidance of 30% growth in U.S. dollar terms amid rising AI demand, Citi analysts said in a separate note recently. The company's share moves Tuesday are tracking gains by its U.S.-listed stock overnight, which closed 3.5% higher following the AMD news. TSMC's shares have gained 22% over the past month as investors cheered the partnerships among the U.S. tech giants. News Corp, owner of The Wall Street Journal and Dow Jones Newswires, has a content-licensing partnership with OpenAI.