Taiwan Semiconductor Manufacturing Co. (TSMC) (2330.TW), the world’s leading contract chipmaker, announced on Wednesday that its third-quarter revenue exceeded both market forecasts and the company’s own projections, driven by strong demand for artificial intelligence (AI) technology.
TSMC, which counts Apple (AAPL.O) and Nvidia (NVDA.O) among its major clients, has capitalized on the growing AI trend, helping it to offset the decline in demand that followed the pandemic-driven boom. For the July to September period, TSMC reported revenue of T$759.69 billion ($23.62 billion), surpassing the LSEG SmartEstimate of T$750.36 billion ($23.33 billion), based on data from 23 analysts. This marks a significant 36.5% year-on-year increase, compared to $17.3 billion for the same period last year.
The revenue data, reported in Taiwan dollars, aligns with TSMC’s earlier U.S. dollar forecasts given in quarterly earnings calls. In July, the company projected third-quarter revenue between $22.4 billion and $23.2 billion.
For September alone, TSMC’s revenue jumped 39.6% year-on-year to T$251.87 billion. The company has not provided further details in its initial revenue statement but will offer a full report on October 17, when it also plans to update its outlook for the remainder of the year.
TSMC’s stock, listed in Taipei, has surged by 72% this year, outperforming the broader market index, which has gained 26%. Ahead of the revenue announcement on Wednesday, TSMC’s shares rose by 1%.
As the industry leader continues to benefit from rising AI demand, TSMC remains a key player in the tech sector’s evolution, with its upcoming earnings report likely to draw significant attention from investors and analysts alike.
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