TSMC(US:TSM) Zhi Tong Cai Jing·2025-10-16 08:09Core Insights - TSMC has raised its revenue growth forecast for 2025 to the mid-range of 30%, reflecting strong confidence in demand for AI components such as chips from Nvidia [1][3] - In Q3, TSMC reported revenue of $33.1 billion, a year-on-year increase of 40.8%, significantly exceeding market expectations [1] - The company's Q3 profit surged 39% to NT$452.3 billion (approximately $14.8 billion), prompting an increase in the lower limit of its capital expenditure target for 2025 to at least $40 billion [1] - Advanced technologies (7nm and above) accounted for 74% of TSMC's total wafer revenue, with 3nm shipments making up 23% and 5nm 37% [1] Revenue and Profit Performance - TSMC's preliminary Q3 sales reached NT$990 billion (approximately $33.05 billion), surpassing guidance expectations, indicating strong demand for AI and iPhone chips [5] - The gross margin is expected to remain at the high end of the forecast range of 55.5%-57.5% due to robust orders for Apple A19 and Nvidia Blackwell chips [5] Market Position and Industry Dynamics - TSMC plays a crucial role in the AI investment boom, being the exclusive manufacturer of chips for major devices like the iPhone and essential for AI services such as ChatGPT and Google Gemini [3] - The company is preparing for potential disruptions in the global semiconductor supply chain due to geopolitical tensions, including export restrictions on rare earth minerals from China and additional tariffs from the U.S. [3][6] - TSMC's CEO has expressed confidence in the sustainability of AI demand, while the company is expanding its manufacturing capabilities in the U.S. to mitigate risks associated with geopolitical uncertainties [6]