TSMC posts record profit for a sixth straight quarter, beating estimates on AI boom

• TSMC reported third-quarter net profit of NT$763.1 billion, up 68.7% from a year earlier.
• The company's revenue and net profit both beat expectations.

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Follow your favorite stocksCREATE FREE ACCOUNTA TSMC logo is displayed on a wall in Hsinchu, Taiwan April 15, 2025. Ann Wang | Reuters

Taiwan Semiconductor Manufacturing Co. on Thursday reported a record third-quarter profit that beat estimates, powered by an unrelenting global appetite for AI chips.

Here are TSMC's third-quarter results against LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate:

• Revenue: 1.49 trillion new Taiwan dollars ($46.36 billion) vs. NT$1.47 trillion
• Net Income: NT$763.1 billion vs. NT$746.34 billion expected

The world's largest contract chipmaker posted a record net profit for a sixth straight quarter, reporting 68.7% surge in the reported quarter from a year earlier.

TSMC's third-quarter operating margin came in at 58.7%, exceeding the upper end of its guidance range of 58%, showcasing the pricing power enjoyed by the company as the AI boom fuels demand for semiconductors.

By technology, 3-nanometer chips accounted for the largest share of its revenue in the third quarter at 33%, followed by 5-nanometer and 7-nanometer chips.

By platform, high-performance computing accounted for the largest share of revenue at 68%, followed by smartphones at 21%. Meanwhile, automotive was the fastest-growing segment on a quarter-on-quarter basis, with 23%  growth rate.

The company's free cash flow surged to NT$476.56 billion in the third quarter, from NT$139.38 billion a year ago.

TSMC board approved NT$7.00 cash dividend for the second quarter. During its second-quarter earnings announcement in July, TSMC had outlined plans to expand its U.S. manufacturing footprint, including a total planned investment of $265 billion in Arizona.

The chipmaker is also reportedly considering expanding beyond Arizona, evaluating a potential investment in Texas as it looks to further strengthen its U.S. manufacturing presence.

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