Taiwan Semi's October revenue rises 17% YoY, below September’s surge

[Taiwan Semiconductor Manufacturing Company (TSMC) headquarters in Silicon Valley]
Sundry Photography

Taiwan Semiconductor Manufacturing's (TSM [https://seekingalpha.com/symbol/TSM]) October revenue rose 16.9% year-on-year, the slowest pace since February 2024, and was lower than the 39.6% surge in September.

TSM — which produces chips for some of the world's largest tech companies, including Apple (AAPL [https://seekingalpha.com/symbol/AAPL]), Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]), and AMD (AMD [https://seekingalpha.com/symbol/AMD])—saw October revenue of NT$367.47 billion.

Analysts on average are expecting TSMC sales to increase 16% in the current quarter, according to a report by _Bloomberg News._

Month-over-month, TSM’s revenue rose 11%, and it’s up 33.8% for January–October 2025.

While reporting its third-quarter results, which beat analysts' estimates, the global foundry raised its revenue growth forecast for the full year to the mid-30% range, compared to the growth forecast of about 30% provided during the second-quarter results.

TSM said it expects robust AI demand to continue and maintained its forecast for capital spending at up to $42B for 2025. However, Chairman & CEO C.C. Wei warned about uncertainties and risks from the potential impact of tariff policies.

BofA had then raised the price target on TSM's stock to NT$1,800 ($360 for ADR) from NT$1,600 ($330 for ADR) and reiterated its Buy rating on the shares, while Wells Fargo said TSM results and comments highlighted strengthening AI demand.

Shares in the world’s largest contract chipmaker, have gained about 45% since the beginning of this year.

Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]) CEO Jensen Huang said on Saturday that he has asked for additional chip supplies from Taiwan Semiconductor Manufacturing Company (TSM [https://seekingalpha.com/symbol/TSM]) as the demand for artificial intelligence remains strong.

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