A major chipmaker reported strong third-quarter results.
The foundry that builds chips for Apple, Nvidia, Broadcom, AMD and Qualcomm reports strong earnings due to AI.
The actual results exceeded the LSEG SmartEstimate forecast of 417.7 billion new Taiwan dollars. LSEG's projection is based on the estimates of equity analysts with a history of accurate earnings forecasts.
TSMC shares, traded on the NYSE as TSM, fell $4.87, or 1.60%, to close at $299.84 on Thursday. Morningstar analysts believe that TSMC's heavy workload from major clients, AI, and its new 2nm process node means that U.S. tariffs will not affect its performance. Morningstar noted this month that "Demand for TSMC’s products is unyielding" and added, "Given TSMC's dominance, we doubt the company would be hindered if it faced tariffs on shipments to U.S. customers. We expect AI demand to stay resilient."
TSMC shares, traded on the NYSE as TSM, fell $4.87, or 1.60%, to close at $299.84 on Thursday. Morningstar analysts believe that TSMC's heavy workload from major clients, AI, and its new 2nm process node means that U.S. tariffs will not affect its performance. Morningstar noted this month that "Demand for TSMC’s products is unyielding" and added, "Given TSMC's dominance, we doubt the company would be hindered if it faced tariffs on shipments to U.S. customers. We expect AI demand to stay resilient."
Anticipating continued strong demand for AI chips, TSMC increased its 2025 revenue growth forecast. The company now expects revenue growth in the mid-30% range in U.S. dollars for this year. TSMC also reaffirmed its capital spending expectations of up to $42 billion for the year.
TSMC's current financial health is closely linked to AI. Significant datacenter agreements between OpenAI and chip designers like Nvidia, AMD, and Broadcom rely on these firms producing substantial quantities of chips. Since all three are TSMC clients, these deals should considerably benefit TSMC in the coming years.
TSMC CEO C.C. Wei commented that "AI demand actually continues to be very strong - more strong than we thought three months ago." He added, "We are also happy to see a continuous strong outlook from our customers. In addition, we directly receive very strong signals from our customers requesting the capacity to support their business. Thus, our conviction in the AI megatrend is strengthening." Wei is confident that even if U.S. sanctions restrict TSMC's operations in China, AI business will continue to expand.
The company is releasing "Iconic Phones: Revolution at Your Fingertips" in a few months, a coffee table book for tech enthusiasts about the 21st century's technological revolution.
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