Earnings Preview | Strong Demand for AI Chips Remains Unchanged, TSMC's Q3 Revenue Expected to Grow Over 30% Year-on-Year
Taiwan Semiconductor is expected to announce its third-quarter financial report on October 16, with Wall Street anticipating a year-on-year revenue growth of over 30%, reaching USD 31.61 billion, and earnings per share of USD 2.63. Benefiting from strong demand for AI chips, Taiwan Semiconductor's revenue in September increased by 31.4% year-on-year. Analysts are optimistic about its prospects, believing that the company will continue to maintain profit growth despite facing uncertainties related to geopolitics and tariffs
According to the Zhitong Finance APP, semiconductor foundry giant Taiwan Semiconductor (TSM.US) plans to announce its third-quarter financial report before the U.S. stock market opens on October 16 (Thursday). Analysts expect the company to continue its profit growth momentum, as it remains one of the major winners benefiting from the artificial intelligence (AI) boom. Wall Street expects TSMC's Q3 revenue to grow by more than 30% year-on-year to $31.61 billion, with earnings per share of $2.63.
TSMC recently reported a 31.4% year-on-year increase in September revenue, indicating that strong demand for advanced AI chips continues unabated. The company, which provides foundry services for tech giants like NVIDIA (NVDA.US) and Apple (AAPL.US), achieved sales of NT$330.98 billion (approximately $10.84 billion) in September, a decrease of 1.4% compared to August 2025.
Based on TSMC's monthly revenue announcements, its revenue for the July to September quarter is estimated to be NT$989.98 billion (approximately $32.44 billion), compared to NT$759.69 billion in the same period last year, marking a year-on-year increase of 30.3%. In July, revenue was NT$323.2 billion, and in August, it was NT$335.8 billion.
Over the past three months, analysts have become increasingly optimistic about TSMC's prospects, repeatedly raising their revenue and earnings per share forecasts for the company. Analyst Mike Zaccardi pointed out that strong AI demand and robust gross margins support the market's sustained demand for TSMC chips. Mike Zaccardi stated, "Despite uncertainties regarding geopolitical issues and tariff prospects, TSMC's high valuation is justified, as the company demonstrates double-digit profit growth, solid profit margins, and favorable pricing trends."
