TSMC lifts revenue forecast on surging AI chip demand after record profit

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest chipmaker, raised its full-year revenue forecast after reporting a record quarterly profit, citing booming demand for artificial intelligence chips. The results reinforced investor confidence in the AI megatrend, which continues to drive growth across the semiconductor industry despite fears of overheating.

TSMC said it now expects 2025 revenue to grow in the mid-30% range in U.S. dollar terms, up from its previous forecast of around 30%. The company maintained its capital expenditure outlook at up to $42 billion for 2025. “AI demand continues to be stronger than we expected three months ago,” CEO C.C. Wei told analysts, adding that customer requests for expanded capacity remain high.

The company’s robust performance comes amid a flurry of billion-dollar partnerships between AI developers and chipmakers, including OpenAI’s collaborations with Nvidia, AMD, and Broadcom to build massive data center capacity. TSMC manufactures chips for all three, as well as for Apple.

In the July–September quarter, TSMC’s net profit surged 39.1% year-on-year to T$452.3 billion ($14.76 billion), easily beating market expectations of T$417.7 billion. Wei said the company remains confident that demand for leading-edge semiconductors is “real” and will continue through 2026, despite geopolitical uncertainties and potential U.S. tariffs on chip imports.

TSMC shares have risen 38% this year, far outpacing Taiwan’s broader market, as the company cements its dominance in the global AI supply chain.