TSMC Sales Cool After Record Surge -- AI Orders Keep Outlook Bright

This article first appeared on GuruFocus.

October turned out to be a steadier month for Taiwan Semiconductor Manufacturing Company (NYSE:TSM). The chipmaker posted revenue of NT$367.47 billion, up 16.9% from a year ago, still solid, though well below the 39.6% jump it saw in September. On a monthly basis, sales rose 11%, keeping year-to-date growth near 34%.

TSMC continues to ride the wave of artificial intelligence demand, supplying chips to industry leaders like Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), and Advanced Micro Devices (AMD). Analysts expect the company's fourth-quarter sales to rise around 16%, driven by sustained strength in AI hardware and server components.

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After a strong third quarter, TSMC boosted its annual revenue growth forecast to the mid-30% range and kept its 2025 capital spending plan capped at $42 billion. CEO C.C. Wei, however, pointed to ongoing risks from global trade and tariffs.

Meanwhile, Nvidia CEO Jensen Huang said he's pushing for more chip supply from TSMC to meet heavy AI demand. Shares of the world's top foundry are up about 45% in 2025, reflecting optimism across the semiconductor space.

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