TSMC Breaks Records on AI Chip Orders from Nvidia, Apple

Oct 16 - Taiwan Semiconductor Manufacturing TSM shares climbed on early Thursday trading after the chipmaker reported record third-quarter profit, driven by surging demand for artificial intelligence and high-performance computing chips.

Net income rose about 39% year over year to NT$253.3 billion ($8.3 billion), while revenue grew 30% to NT$989.9 billion ($33.1 billion), topping analyst forecasts. Earnings per American depositary receipt reached $2.92, surpassing estimates of $2.63.

The company said demand for 3-nanometer and 5-nanometer chips remained strong across AI, data center, and smartphone applications. Its high-performance computing division accounted for over half of total sales, supported by orders from key clients such as Nvidia (NVDA) and Apple (AAPL).

North America contributed 76% of third-quarter revenue, with Asia Pacific, China, Japan, and EMEA making up the remainder.

Looking ahead, for the fourth quarter, TSMC expects revenue between $32.2 billion and $33.4 billion and gross margins of 59% to 61%.

TSM shares gained about 3% in early Thursday trading.