Earnings Preview | Continued Strong Demand for AI Chips to Drive Taiwan Semiconductor Manufacturing (TSM.US) Q3 Revenue Growth Exceeding 30%

Stock News
Oct 16

According to reports, Taiwan Semiconductor Manufacturing (TSM.US), a leading foundry giant, is set to release its third-quarter earnings report before the U.S. market opens on October 16 (Thursday). Analysts expect the company to sustain its profit growth momentum, as it remains one of the primary beneficiaries of the artificial intelligence (AI) boom. Wall Street anticipates TSM's Q3 revenue will increase by over 30% year-on-year to $31.61 billion, with earnings per share projected at $2.63. TSM's revenue for September rose by 31.4% year-on-year, indicating robust and ongoing demand for advanced AI chips. The company, which provides manufacturing services for tech giants like NVIDIA (NVDA.US) and Apple (AAPL.US), reported September sales of NT$330.98 billion (approximately $10.84 billion), down 1.4% from August 2025. Based on TSM’s monthly revenue announcements, the revenue for the quarter from July to September is estimated to be NT$989.98 billion (around $32.44 billion), a significant increase of 30.3% compared to NT$759.69 billion in the same period last year. Monthly revenues were NT$323.2 billion in July and NT$335.8 billion in August. Over the past three months, analysts have become increasingly optimistic about TSM’s outlook, frequently raising their revenue and earnings per share forecasts for the company. Analyst Mike Zaccardi noted that strong AI demand and robust gross margins support the sustained demand for TSM's chips in the market. He stated, “Despite uncertainties surrounding geopolitical issues and tariffs, TSM’s high valuation is justified as the company demonstrates double-digit profit growth, solid profit margins, and favorable pricing trends.”

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