TSMC: Continuing to Grow with the Increase in Chip Demand

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) Showed Strong Performance in October

Taiwan Semiconductor Manufacturing Company achieved a revenue of 367.47 billion NT$ in October, representing a 16.9% increase compared to the previous year. However, this figure is significantly below the 39.6% increase seen in September. On a monthly basis, sales rose by 11%, maintaining a year-to-date growth rate of 34%.

The company continues to strengthen with the rising demand for artificial intelligence, supplying chips to industry leaders such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), and Advanced Micro Devices (AMD). Analysts expect TSMC's fourth-quarter sales to show an increase of around 16%, driven by sustained strength in AI hardware and server components.

Following strong results in the third quarter, TSMC raised its annual revenue growth forecast to an average of 30% and maintained its capital expenditure plan set at 42 billion dollars for 2025. However, CEO C.C. Wei highlighted ongoing risks from global trade and tariffs.

Meanwhile, Nvidia CEO Jensen Huang stated that he is making efforts to source more chips from TSMC to meet high AI demand. The shares of the world's largest chip manufacturer are projected to rise by approximately 45% in 2025, reflecting the overall optimism in the semiconductor sector.