TSMC(US:TSM) 券商中国·2025-10-16 15:05Core Viewpoint - The article highlights the strong performance of TSMC in Q3 2025, driven by robust demand for AI chips, which has positively influenced market sentiment and stock prices of major tech companies [1][5]. Financial Performance - TSMC reported a net profit of NT$452.3 billion in Q3 2025, a 39% year-on-year increase, significantly exceeding market expectations of NT$405.47 billion [1][3]. - Revenue reached NT$989.92 billion, up 30% year-on-year, surpassing the forecast of NT$967.7 billion [1][3]. - Operating profit was NT$500.69 billion, also up 39% year-on-year, exceeding the expected NT$458.6 billion [1][3]. Margins and Capital Expenditure - Gross margin improved to 59.5%, up from 58.6% in the previous quarter, exceeding analyst expectations of 57.1% [2][3]. - Operating margin reached 50.6%, reflecting a 1 percentage point increase quarter-on-quarter [2][3]. - Capital expenditures for Q3 totaled US$9.7 billion, with a total of US$29.39 billion for the first nine months, maintaining a high level [2][5]. Demand and Market Trends - Advanced process technologies drove revenue growth, with 74% of total wafer revenue coming from advanced processes (7nm and below) [2][3]. - High-performance computing (HPC) accounted for 57% of platform revenue, surpassing the 30% from smartphones [2][5]. - North American customer revenue share increased to 76%, indicating strong demand for AI chips [2][5]. Future Outlook - TSMC expects Q4 sales to be between US$32.2 billion and US$33.4 billion, with a gross margin forecast of 59% to 61% [3][5]. - The company raised its revenue growth forecast for 2025 to the mid-30% range, up from previous estimates [5][6]. - TSMC's CEO expressed confidence in the sustained strength of AI demand, which is expected to accelerate U.S. capacity expansion [5][6]. Market Reactions - Following TSMC's strong earnings report, several investment banks raised their target prices for the company, reflecting increased market optimism [4][5]. - Barclays raised its target price from US$325 to US$330, while Citigroup increased its target from NT$1,400 to NT$1,600 [4][5].