TLDR
- TSM stock surged 3.5% to record high of NTD 1,340 following strong revenue data
- August revenue jumped 34% year-over-year to NT$336 billion driven by AI chip recovery
- Bernstein expects Q3 results to beat consensus estimates by 7-8% above forecasts
- Nvidia’s $100 billion OpenAI investment boosts long-term demand outlook for TSM
- Analysts project 33% full-year revenue growth for 2025 on AI infrastructure expansion
Taiwan Semiconductor stock reached new all-time highs as investors responded to strong financial data and promising partnership developments. The world’s largest contract chipmaker continues to benefit from surging artificial intelligence demand.
August revenue figures exceeded expectations with NT$336 billion ($11.1 billion) in monthly sales. This represents a robust 34% increase compared to the same period last year. The strong performance positions TSM ahead of third-quarter guidance expectations.
July and August combined sales already reached 70% of Q3’s guidance midpoint. This early momentum suggests the company will deliver results well above market forecasts when third-quarter earnings are released.
Analyst Outlook Turns Bullish
Bernstein analysts released updated projections on September 11, 2025, expecting TSM to exceed revenue guidance. The investment firm cited recovery in non-AI semiconductor markets alongside continued strong demand for artificial intelligence processors.
Current consensus estimates may prove conservative based on recent sales data. Bernstein projects final Q3 results will come in 7-8% above Wall Street expectations. The firm also forecasts impressive 33% revenue growth for the full 2025 fiscal year.
This optimistic outlook reflects TSM’s dominant position in advanced semiconductor manufacturing. The company produces cutting-edge processors for major technology companies requiring the most sophisticated chip designs.
Nvidia Partnership Provides Long-Term Growth
Market sentiment received additional support from Nvidia’s announced investment in OpenAI. The graphics processor company plans to invest up to $100 billion to expand AI data center infrastructure over the coming years.
This partnership directly benefits TSM as Nvidia’s primary manufacturing partner for advanced AI chips. The agreement involves supplying specialized data center processors and deploying at least 10 gigawatts of computing capacity.
The long-term nature of this commitment provides TSM with sustained revenue visibility. Advanced AI processors require the company’s most sophisticated manufacturing processes, which command premium pricing and higher profit margins.
TSM shares responded immediately to the partnership news. The stock gained 3.5% in early Asian trading to reach the record high of NTD 1,340. Trading volumes increased as institutional investors positioned for continued AI infrastructure expansion.
The company’s technical manufacturing leadership gives it competitive advantages in serving high-performance computing customers. TSM operates the world’s most advanced semiconductor fabrication facilities, enabling production of chips that competitors cannot manufacture.
Recent trading patterns show strong institutional support for the stock. The combination of fundamental growth drivers and strategic partnerships creates compelling reasons for continued investor interest in Taiwan Semiconductor.
