Taiwan Semiconductor Manufacturing Company (TSMC) reported a 39.1% increase in third-quarter profit, reaching a new record as demand for AI chips remained strong. Revenue hit NT$989.92 billion, beating estimates. TSMC’s high-performance computing division, focusing on AI and 5G, drove 57% of their revenues, with advanced chips of 7nm or smaller accounting for 74% of wafer revenue.

CEO C.C. Wei stated that TSMC’s revenue growth forecast for 2025 has been raised to the mid-30% range due to the positive AI market developments. The company also increased its capacity expansion budget to $40 billion for the year. TSMC has been investing in U.S. facilities to mitigate potential impacts from U.S. tariff negotiations.

TSMC’s strong earnings in the third quarter were boosted by the success of their most advanced chips, particularly in the 3nm category. The company is closely monitoring U.S. tariff developments while negotiating for lower rates, with potential exemptions expected. TSMC shares in Taiwan have risen by over 38% this year, reflecting investor confidence in the company’s performance.

Read more at CNBC: TSMC profit surges 39% to beat estimates and hit record on AI demand