TSMC (NYSE:TSM), the world’s largest producer of advanced AI chips, projected fourth-quarter revenue growth of up to 24%, powered by the ongoing artificial intelligence boom. The company’s earnings once again topped forecasts, marking its sixth consecutive quarter of double-digit profit expansion.
TSMC reiterated its capital spending outlook of up to $42 billion for 2025, citing strong AI demand as a key driver. However, it also cautioned that U.S. trade tariffs and currency fluctuations could pose headwinds for its business.
The Taiwan-based company — which counts NVDA (Nvidia) and AAPL (Apple) among its biggest clients — reported a 39.1% year-on-year jump in net profit for the third quarter. Net earnings for July through September reached T$452.3 billion ($14.76 billion), easily surpassing the T$417.7 billion LSEG SmartEstimate compiled from 20 analysts.
TSMC said it expects the AI boom to intensify, with demand already exceeding projections made three months earlier. The company anticipates continued strength in 2026 as adoption of AI-related technologies expands.
Trade uncertainty remains a key risk for the chip industry, with U.S. President Donald Trump’s tariff threats on semiconductors adding to the pressure. Earlier this year, TSMC unveiled plans for a $100 billion U.S. investment alongside Trump at the White House, in addition to $65 billion already committed to building three fabrication plants in Arizona, one of which is operational.
The upbeat outlook comes as the broader semiconductor sector benefits from the AI wave. ASML, one of TSMC’s top suppliers, reported better-than-expected bookings on Wednesday but warned of weaker demand from China in 2026. Meanwhile, Samsung Electronics projected its strongest quarterly profit in more than three years earlier this week, also citing AI-related demand as a key factor.
TSMC’s shares listed in Taiwan have gained 38% year-to-date, outperforming the broader market’s 20% rise and shrugging off trade tariff concerns.
Taiwan Semiconductor stock price
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