Asia's largest tech company reports record demand and jumps past analyst expectations, sending AI stock prices higher
Cheng Xin
The chip maker reported revenues of NT$989.92 billion new Taiwan dollars for the September quarter. Analysts were expecting NT$977.46 billion. Net income came in at NT$452.3 billion, vs. expectations of NT$417.69 billion.
The strong performance of TSMC $TSM is giving a boost to other AI chipmakers in the pre-market hours. Broadcom $AVGO was up 1.7% before Wall Street opened, while Nvidia $NVDA shares were poised for a 1.25% boost. TSMC was up more than 2% in pre-market activity.
“Recent developments in AI market continue to be very positive,” TSMC CEO C.C. Wei said in an earnings call. “Thus, our conviction in the AI mega trend is strengthening.”
To underline this position, the company has raised its revenue growth forecast for 2025 to the mid-30% range, an increase from the previous level of 30%, set in July. It also noted that tariffs have not resulted in any significant change in customer behavior, but it continued to monitor the situation.
Shares of TSMC have seen their value increase more than 50% year to date.
Analysts reiterated their glowing recommendations on the company, with Wedbush saying TSMC was "the only meaningful supplier of silicon built on the most advanced processes."
"This setup," it continued, "has allowed TSMC to hold margins close to all-time high levels despite a multitude of meaningful cost headwinds (higher utilities costs, overseas fab expansion, etc.). And we expect this dynamic will continue to hold true over the next few years."
TSMC's strong results come as worries about the AI stock boom being a bubble grow. 54% of fund managers polled by Bank of America $BAC earlier this week said tech stocks were overvalued.
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