TSMC lifts revenue guidance after another record quarter

(Sharecast News) - Contract chipmaker TSMC smashed forecasts with a record profit in the third quarter and once again upgraded its annual revenue guidance as it continues to reap the benefits of the continued surge in AI spending worldwide. The company, officially known as Taiwan Semiconductor Manufacturing Company, said it now expects revenues to grow at a "mid-30%" rate in 2025, up from earlier estimates of around 30%.

Net revenues in the third quarter came in at US$33.1bn, up 40.8% on last year and comfortably ahead of the $31.8bn-33.0bn guidance given last quarter. The consensus estimate was $32.0bn.

Operating margins jumped to 50.6% from 47.5%, well ahead of the 45.5-47.5% guidance range, helping net income to surge 39.1% to $14.8bn - some 13.7% ahead of the record level reported for the second quarter.

"Recent developments in AI market continue to be very positive," TSMC's chief executive CC Wei said in an earnings call. "Our conviction in the AI mega trend is strengthening."

When asked about geopolitical challenges regarding the recent escalation in trade tensions between the US and China, Wei said: "We understand there are uncertainties and risks from the potential impact of tariff policies, especially in consumer-related and price-sensitive market segments."

US-listed stock futures were up 1.6% at $309.50 in pre-market trading.