Taiwan Semiconductor Manufacturing Company Limited (TSM) Announces Q3 2025 Results

Core Insights - Taiwan Semiconductor Manufacturing Company Limited (TSM) is recognized as one of the most promising AI stocks to buy currently, with strong Q3 2025 results indicating growth in revenue and net income [1][2] Financial Performance - In Q3 2025, TSM reported consolidated revenue of NT$989.92 billion and net income of NT$452.30 billion, with diluted earnings per share at NT$17.44 (US$2.92 per ADR unit) [1] - Compared to Q2 2025, TSM experienced a 6.0% increase in revenue and a 13.6% rise in net income [1] Business Segmentation - Shipments of 3-nanometer chips constituted 23% of total wafer revenue, while 5-nanometer and 7-nanometer chips accounted for 37% and 14%, respectively [2] - Approximately 60% of TSM's revenue is derived from manufacturing AI and high-performance computing (HPC) chips for major clients such as Nvidia, Apple, and Amazon [3] Capital Expenditure Plans - TSM is narrowing its 2025 capital expenditure (capex) range to USD 40 billion – USD 42 billion, with around 70% allocated for advanced process technologies [2] - The company plans to invest 10% to 20% of its capex in specialty technologies and advanced packaging, testing, and mass production [2] Market Position and Strategy - TSM has the most manufacturing capacity at leading-edge nodes, which is crucial for customers designing power-efficient chips amid power-constrained data centers [3] - The company's strong execution over the years has provided significant benefits to customers in planning multi-year road maps [3]