Taiwan Semiconductor Manufacturing Co. (TSM) has reported a record quarterly profit as demand for artificial intelligence (A.I.) microchips and processors surges.
The company, which makes about three-quarters (75%) of the world’s microchips, posted a record third-quarter profit that beat Wall Street’s forecasts.
Revenue in the summer quarter totaled 1.49 trillion new Taiwan dollars ($46.36 billion U.S.), which topped the NT$1.47 trillion expected among analysts.
The company’s profit, or net income, totaled a record NT$763.1 billion, which beat the NT$746.34 billion that had been forecast on Wall Street.
It was the sixth consecutive quarter that Taiwan Semiconductor reported record profits. The latest profit was up 68.7% from a year earlier.
The company’s third-quarter operating margin came in at 58.7%, exceeding the upper end of its guidance range of 58% and showcasing its pricing power amid demand for A.I. semiconductors.
Free cash flow surged to NT$476.56 billion in the third quarter from NT$139.38 billion a year earlier.
Looking ahead, Taiwan Semiconductor forecast fourth-quarter revenue of $52.3 billion U.S. to $54.3 billion U.S., which would represent a 14% sequential increase from the third quarter.
The company’s strong financial results and upgraded revenue guidance highlight how demand for advanced microchips continues to outpace the company’s production capacity.
Management at Taiwan Semiconductor said that demand for A.I. microchips remains extremely strong, driven by the growing adoption of agentic A.I. and open-source models.
Customers of Taiwan Semiconductor including U.S. technology giants Nvidia (NVDA) and Apple (AAPL).
Taiwan Semiconductor is expanding its U.S. manufacturing footprint, investing $265 billion U.S. to build multiple production facilities in Arizona.
TSM stock has risen 41% in the last 12 months to trade at $430 U.S. per share in New York.
Tech Insider
