TLDR
- Q3 2025 revenue hit $32.47 billion, beating analyst forecasts by $570 million
- Year-over-year revenue jumped 30% in third quarter driven by AI applications
- First nine months of 2025 show 36.4% revenue increase versus 2024
- September revenue up 31.4% year-over-year despite 1.4% monthly decline
- Stock price climbed 34% year-to-date, outperforming Taiwan market by 15.5%
TSMC delivered third quarter results that exceeded Wall Street expectations. The chip manufacturer reported revenue of $32.47 billion for July through September.
The figure represents a 30% gain compared to the third quarter of 2024. Analysts had projected revenue of $31.9 billion, making this a clear beat.
The company’s own guidance called for revenue between $31.8 billion and $33 billion. The actual result landed right in the middle of that range.
AI Applications Fuel Revenue Surge
Artificial intelligence has become the primary driver of TSMC’s growth. Demand for chips used in AI training and inference has exploded over the past year.
This surge has more than compensated for weaker demand in consumer electronics. Products like tablets and smartphones saw chip orders decline following the pandemic boom.
TSMC supplies chips to major tech companies including Nvidia and Apple. Both firms have increased their orders for advanced semiconductor components.
The monthly revenue data tells an interesting story. September 2025 revenue dipped 1.4% compared to August levels.
But the year-over-year comparison remains strong. September revenue still climbed 31.4% versus the same month in 2024.
Strong Year-to-Date Performance
The cumulative numbers for 2025 paint an even better picture. Through the first nine months, TSMC’s revenue grew 36.4% compared to 2024.
This positions the company well ahead of its prior year performance. The growth underscores TSMC’s critical role in the global chip supply chain.
TSMC operates as a pure-play foundry. The company manufactures chips designed by others but doesn’t create its own designs.
This business model has made the firm indispensable to tech companies worldwide. From smartphones to data centers, TSMC chips power a vast array of devices.
Stock Performance and Outlook
Investors have rewarded TSMC’s strong performance. Shares listed in Taipei have gained 34% so far in 2025.
The broader Taiwan market has risen 18.5% in the same period. TSMC’s stock has outpaced the market by 15.5 percentage points.
The company currently trades with a market capitalization of $1.22 trillion. Average daily trading volume sits at 11.7 million shares.
Analysts maintain a buy rating on the stock with a $330 price target. Current consensus sees additional upside from current levels.
TSMC will release complete third quarter earnings on October 16. The report will include updated guidance for the fourth quarter and full year 2025.
The company provides all financial guidance in U.S. dollars. Investors will be watching for commentary on AI chip demand and capacity expansion plans.
Taiwan’s Foxconn also reported record third quarter revenue. The electronics manufacturer and Nvidia server maker benefited from the same AI trends driving TSMC’s growth.
