TAIPEI (Reuters) -Taiwan Semiconductor Manufacturing Co, the dominant producer of superior chips utilized in synthetic intelligence purposes, reported on Thursday a forecast-beating 54% soar in third-quarter revenue on the again of hovering demand.
The world’s largest contract chipmaker, whose prospects embody Apple (NASDAQ:) and Nvidia (NASDAQ:), has benefited from a surge in the direction of AI throughout a spectrum of industries.
TSMC posted a internet revenue of T$325.3 billion ($10.11 billion) for the quarter ended Sept. 30, in contrast with the T$300.2 billion predicted by an LSEG SmartEstimate drawn from 22 analysts. SmartEstimates give larger weighting to forecasts from analysts who’re extra constantly correct.
TSMC, Asia’s most precious publicly listed firm, stated third-quarter income rose 36% year-on-year to $23.5 billion, higher than the corporate’s earlier forecast of $22.4 billion to $23.2 billion. The corporate final week introduced third-quarter income in Taiwan {dollars}, coming in at T$759.69 billion.
Capital expenditure within the third quarter was $6.4 billion, TSMC stated, in contrast with $6.36 billion within the second quarter.
On Tuesday, ASML (AS:), the world’s largest chipmaking gear provider to corporations together with TSMC, forecast decrease than anticipated 2025 gross sales and bookings on sustained weak point in components of the chip market, pushing the Dutch agency’s shares to their largest one-day drop since 1998.
TSMC, at its quarterly earnings name beginning at 0600 GMT on Thursday, will replace its outlook for the present quarter in addition to for the complete yr, together with its capital expenditure, because it races to broaden manufacturing.
The chipmaker is spending billions of {dollars} constructing new factories abroad, together with $65 billion on three vegetation within the U.S. state of Arizona, although it has stated most manufacturing will stay in Taiwan.
On its final earnings name in July, TSMC raised its full-year income forecast and adjusted its capital expenditure plans for this yr to between $30 billion and $32 billion, in contrast with a earlier forecast of $28 billion to $32 billion.
The second half of the yr is historically the height season for Taiwanese tech corporations as they race to produce prospects forward of the year-end vacation season in main Western markets.
The AI increase has helped drive up TSMC shares, with its Taipei-listed inventory leaping 75% to this point this yr, in contrast with a 28% achieve for the broader market, giving it a market capitalisation of round $840 billion.
TSMC, colloquially referred to in Taiwan because the “sacred mountain protecting the country” for its crucial position in Taiwan’s export-dependent financial system, faces little competitors, although each Intel (NASDAQ:) and Samsung (KS:) are attempting to problem its dominance.
($1 = 32.1700 Taiwan {dollars})
