TLDR
- TSMC reported third quarter revenue of $32.47 billion, up 30% year-over-year and beating analyst estimates of $31.9 billion
- September 2025 revenue decreased 1.4% from August but increased 31.4% compared to September 2024
- Year-to-date revenue through September 2025 grew 36.4% compared to the same period in 2024
- Revenue came in at the mid-point of company guidance of $31.8 billion to $33 billion issued in July
- TSMC shares have gained 34% in 2025, outpacing the broader Taiwan market’s 18.5% rise
TSMC reported third quarter revenue that beat market expectations on Thursday. The world’s largest contract chipmaker posted revenue of T$989.92 billion, or $32.47 billion, for the July-September period.
This represents a 30% increase compared to the same quarter last year. The figure topped the LSEG SmartEstimate of T$973.26 billion from 22 analysts.
The revenue came in at the mid-point of TSMC’s own guidance. In July, the company had projected third quarter revenue between $31.8 billion and $33 billion.
Demand for TSMC’s products has jumped due to surging interest in artificial intelligence applications. This AI boom has more than offset declining demand for chips used in consumer electronics like tablets.
The September monthly revenue figures showed a different pattern. Revenue for September 2025 decreased 1.4% from August 2025 levels.
However, September revenue still posted strong growth when compared to the prior year. The month-over-month decline didn’t prevent a 31.4% increase versus September 2024.
Year-to-Date Performance Exceeds Expectations
The cumulative revenue picture for 2025 shows even stronger performance. For the first nine months of 2025, TSMC reported revenue growth of 36.4% year-over-year.
This puts the company well ahead of its year-ago pace. The growth reflects TSMC’s position as a key supplier to major tech companies.
TSMC’s customer list includes Nvidia and Apple. Both companies have driven strong orders for advanced chips.
Stock Performance and Market Position
TSMC’s Taipei-listed shares have climbed 34% so far this year. This gain outpaces the broader Taiwan market, which has risen 18.5% in the same period.
The stock performance reflects investor confidence in the company’s growth trajectory. Analysts currently rate the stock as a buy with a $330 price target.
TSMC operates as a pure-play foundry in the semiconductor industry. The company manufactures chips designed by other companies but doesn’t design its own products.
This business model has made TSMC essential to the global electronics supply chain. The company produces advanced chips that power everything from smartphones to data centers.
The AI chip market has become particularly important for TSMC’s growth. Demand for chips used in AI training and inference has surged over the past year.
Taiwan’s Foxconn has also reported strong sales numbers. The contract electronics maker and Nvidia server manufacturer logged its highest-ever third quarter revenue.
TSMC will report full third quarter earnings on October 16. The earnings report will include an updated outlook for the current quarter and full year.
The company only provides financial guidance in U.S. dollars. Average trading volume for TSM stock stands at 11.7 million shares with a current market cap of $1.22 trillion.
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