TSMC Reports 39% Profit Growth in Q3

Taiwan Semiconductor Manufacturing Company (TSMC) reported a 39% increase in net profit for the third quarter, reaching NT$452.3 billion, surpassing analyst expectations of NT$417.69 billion. Revenue for the quarter totaled NT$989.92 billion, exceeding forecasts of NT$977.46 billion. The results reflect continued demand for advanced semiconductor chips used in high-performance computing and machine learning applications.

In pre-market trading, TSMC shares rose more than 2%, while Broadcom gained 1.7% and Nvidia 1.25%, reflecting market attention on chipmakers supplying leading-edge technology. CEO C.C. Wei said during the earnings call that the company sees sustained demand for advanced semiconductors, noting that recent developments support continued production growth.

TSMC also updated its 2025 revenue projection, raising the growth target to the mid-30% range, up from the prior 30% forecast. The company reported that tariffs have not caused material changes in customer orders but will continue monitoring geopolitical and trade conditions.

Wedbush analysts described TSMC as a primary supplier of chips built on the most advanced semiconductor processes, capable of maintaining profit margins despite higher costs from overseas fabrication expansions and increased energy expenses. Shares of TSMC have gained over 50% year-to-date, reflecting investor confidence in the company’s market position and technological capacity.

A recent Bank of America survey indicated that 54% of fund managers consider technology stocks overvalued, highlighting caution among investors despite TSMC’s strong quarterly performance.

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