TSMC Q3 profit blows past expectations on strong AI demand By

-- TSMC (NYSE:)- the world’s biggest contract chipmaker- posted a stronger-than-expected third quarter profit on mt4 foreign exchange traderThursday, as sustained demand from the artificial intelligence industry continued to boost its topline. 

The Taiwanese firm clocked a net profit of T$325.26 billion ($$10.1 billion) in the three months to September 30, TSMC said in a press release. The figure was higher than a Reuters estimate of T$300.2 billion.

The firm’s third-quarter revenue came up to T$759.69 billion, up 39% from last year. 

Earnings were boosted chiefly by increased demand for TSMC’s advanced 3-nanometer chips, which accounted for 20% of overall revenue from wafer sales. 

Thursday's earnings come just days after semiconductor equipment maker ASML (NASDAQ:) posted a weak sales outlook for 2025, citing weak chip demand from sectors outside AI.

TSMC's earnings reflected this trend, with revenue from its Digital Consumer Electronics sector- which makes chips for devices such as smart TVs and cameras- sinking 19% quarter-on-quarter. But this was largely offset by a surge in revenue from its core High-Performance Computing unit. Both TSMC and ASML are considered as bellwethers for the chip industry.

TSMC is a key component of the global chipmaking supply chain, and has benefited greatly from increased demand on the back of the AI boom.

The firm ranks Apple Inc (NASDAQ:) and NVIDIA Corporation (NASDAQ:) among its biggest clients, with the latter being a key source of demand for TSMC in the past year. Nvidia makes the most advanced AI chips in the market.

 

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