TSMC posts record quarterly revenue on AI chip demand

Taiwan Semiconductor Manufacturing Co. ↘ 1.02% said Thursday that September revenue was NT$511.86 billion (US$16.03 billion). That is 54.6% more than a year earlier and 0.6% less than in August. With the September figure, third-quarter revenue comes to a record NT$1.49 trillion ($46.71 billion), up 50% from NT$989.92 billion a year ago, according to Reuters calculations.reuters+1

The quarterly total topped an LSEG SmartEstimate of NT$1.46 trillion, which was based on 19 analysts. Bloomberg, which put growth at 51% using its own calculations, cited the same NT$1.46 trillion average forecast. The result points to steady demand for the advanced chips TSMC makes for Nvidia ↘ 0.52% and Apple ↘ 1.11%.finance.yahoo+1

Above the company's own guidance

The total also came in above TSMC's July forecast of $44.6 billion to $45.8 billion, the company's guidance for the quarter. Taiwan's Central News Agency said that at the assumed rate of NT$32 to the dollar, the top of that range works out to about NT$1.47 trillion. CNA reported that quarterly revenue rose 17.62% from the second quarter.focustaiwan+1

According to CNA, September revenue was TSMC's highest ever for that month, though it fell just short of August's all-time monthly record of NT$514.81 billion. TrendForce reported that the September number was well above analyst forecasts in the Economic Daily News. Those forecasts ranged from NT$444.8 billion to NT$483.2 billion, which would have meant a monthly drop of 6.1% to 13.6%. Analysts quoted by CNA said the quarter was driven by AI chip demand and by smartphone makers building up inventory ahead of new product launches.trendforce+1

Revenue for the first nine months of the year totaled about NT$3.9 trillion, up 41.1%.focustaiwan

TSMC's Taipei-listed shares closed 1.35% lower before the figures came out, while the broader market fell 1%. The stock is still up about 65% this year.reuters

Focus turns to Oct. 15

TSMC will report full third-quarter results and update its outlook on Oct. 15. Analysts expect quarterly net profit to rise 64% to NT$740.8 billion, according to an LSEG SmartEstimate. The company had guided for a gross margin of 65% to 67% this quarter, down from 67.7% in the second quarter.aa+3

CNA reported that investors will be looking at capital spending plans, gross margin guidance and progress on advanced processes and packaging. Analysts expect fourth-quarter revenue to grow on demand for Nvidia's Vera Rubin platform and TSMC's 2-nanometer chips.focustaiwan

Bloomberg Intelligence analyst Charles Shum said the bigger questions at the briefing "concern 2027 and beyond." He pointed to TSMC's expanded Arizona plan, a possible Texas hub, and Taiwan media reports of 3% to 6% wafer price increases in 2027.finance.yahoo

The rest of the industry is also reporting strong numbers. Samsung Electronics said Thursday it expects third-quarter operating profit of more than 100 trillion won, driven by demand for AI memory.reuters+1