TSMC Raises 2025 Revenue Forecast on AI Boom, U.S. Stock Rallies 1.6%

In Focus

• TSMC has raised revenue forecast for 2025 on AI boom
• Chipmaker says its revenue could grow by mid-30% range in 2025
• Tech giant maintained capital spending at $42 billion capital
• TSMC’s stock in the U.S. rose 1.6% on raised revenue forecast

Taiwan Semiconductor Manufacturing Company (TSMC) has revised its full-year revenue forecast upwards. According to Reuters, the changes are driven by strong AI demand. The top chip manufacturer reported high profits that surpassed market expectations, highlighting investor confidence in the TSMC AI boom.

The Taiwanese chip manufacturer raised its 2025 revenue estimates to the mid-30% range, up from about 30% previously. TSMC’s 2025 capital expenditure remained unchanged at $42 billion even as the company said it expects AI demand to continue to strengthen.

TSMC’s raised revenue forecast caused its U.S. stock to soar 1.6% on October 16, 2025. The upbeat outlook also lifted other major chip stocks, including those of NVIDIA and AMD.

Q3 Profit Hit New Record High

TSMC has benefited immensely from the AI boom. The tech giant produces advanced AI processors for leading companies, including Apple and NVIDIA. In the third-quarter, TSMC’s profit rose 39.1% compared to the same period last year.

TSMC’s Q3 revenue amounted to NT$ 989.92 billion against the projected NT$ 977.46 billion. This is 30.3% higher compared to the same period in 2024.

The company’s net profit stood at NT$452.3 billion compared to the NT$417.69 billion estimated by analysts. This represented a 13.7% growth from last quarter, marking a new record high.

“We are still very comfortable that the demand on leading-edge semiconductors is real. And as I continue to say that we look at all the demand and look at our capacity expansion, TSMC needs to work very hard to narrow the gap,” Wei added.

How is AI Demand Driving TSMC’s Revenue Forecast?

Recently, AI companies and chipmakers have signed megadeals to boost data center capacity.
On October 14, 2025, AMD signed a GPU supply deal with Oracle for its cloud infrastructure. The U.S. chip maker signed the deal barely a week after signing a chip deal with OpenAI to supply 6 gigawatts worth of AI GPUs to the AI startup.

“AI demand actually continues to be very strong, more strong than we thought three months ago. We are also happy to see a continuous strong outlook from our customers. We directly receive very strong signals from our customers requesting the capacity to support their business. Thus, our conviction in the AI megatrend is strengthening,” CEO C.C. Wei said.

At the same time, OpenAI has partnered with Broadcom to develop and launch its own AI processors in a move that could redefine the dynamics around data center networking and chip supply strategies. These deals signal rising demand for AI chips, which are a major cost component in building and running data centers.

A Sneak Preview of TSMC’s AI Boom:

• TSMC’s Q3 revenue and net profit surpassed analyst estimates
• Q3 net profit grew 13.7% from amount reported in Q2
• TSMC’s profit rose 39.1% compared to the same period last year
• Megadeals between chipmakers and AI firms signal rising demand for AI chips

TSMC’s Resilience Amidst Global Uncertainty

TSMC’s Q3 profit grew despite the uncertainty in the global chip industry triggered by U.S. trade policies and tariffs. Early this year, U.S. President Donald Trump threatened to introduce tariffs on semiconductor imports and introduced export restrictions to the Chinese market.

TSMC plans to invest $100 billion in the U.S in addition to an initial $65 billion that it had pledged for three production plants in Arizona. One of these plants is operational. TSMC is one of ASML’s leading customers.

On October 14, 2025, the chip equipment supplier announced that it would give a strong outlook driven by rising demand for chip equipment. In Taiwan, TSMC’s stock has jumped 38% since the start of the year, pointing to strong resilience despite rising import tariffs.