TSMC Profit Seen Rising 62% as Quarterly Revenue Beats Guidance

what happened

Taiwan Semiconductor Manufacturing Co. is due to release its third-quarter results on Thursday. Newsmetry API reports that a FactSet survey of 26 analysts points to net income of 731.77 billion New Taiwan dollars, or US$22.90 billion, representing a 62% increase from a year earlier.

Revenue is projected to have climbed 51% to NT$1.494 trillion, equivalent to US$46.76 billion. That would put the result above TSMC’s own range of US$44.6 billion to US$45.8 billion. The stock gained just 2.9% during the third quarter after advancing by double digits in each of the two preceding quarters. Chip shares broadly faced pressure from expensive oil, renewed inflation worries, higher bond yields and debate over the scale of artificial-intelligence spending. TSMC shares are still up more than 60% this year, broadly matching the Taiex benchmark.

Investors will seek details on possible expansion in Texas after Tesla Chief Executive Elon Musk confirmed preliminary talks with TSMC about a potential partnership on Tesla’s Terafab project there. In July, TSMC announced another US$100 billion for Arizona, taking its total U.S. commitment to US$265 billion. The company’s full-year revenue-growth view, currently slightly above 40%, and its 2027 outlook will also be in focus.

why it matters

The revenue beat could shape expectations for another upgrade to TSMC’s full-year outlook. Citi analysts say AI-computing demand, possible benefits from agentic AI and a co-packaged-optics networking cycle could support revenue growth above 40% in 2027.

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