TSMC Reports 40% YoY Net Income Growth in Q3 Driven by Soaring AI Chip Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- Performance Growth: TSMC reported a 40% year-over-year increase in net income for Q3 2025, achieving record profits and revenues, which underscores the robust demand for AI chips and high-performance computing, further solidifying its market leadership.
- Market Share: TSMC controls approximately 70% of the global semiconductor foundry market, positioning itself as a key player in the AI revolution, ensuring that investors can profit regardless of which AI competitors emerge victorious.
- Expansion Plans: The company is committing $165 billion to build six advanced fabs in Arizona over the next five years, with a goal of relocating 30% of its most advanced capacity outside Taiwan by 2028, thereby enhancing its global manufacturing capabilities.
- Stock Performance: TSMC's shares have risen about 40% year-to-date, reflecting strong market confidence in its future growth potential, making it a compelling buy for investors looking to capitalize on upcoming earnings.
TSM
$302.84+Infinity%1D
Analyst Views on TSM
Wall Street analysts forecast TSM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSM is 348.25 USD with a low forecast of 290.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 298.800
Low
290.00
Averages
348.25
High
400.00
Current: 298.800
Low
290.00
Averages
348.25
High
400.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based company mainly engaged in the provision of integrated circuit manufacturing services. The integrated circuit manufacturing services include process technology, special process technology, design ecosystem support, mask technology, 3DFabricTM advanced packaging and silicon stacking technology services. The Company has completed the transfer and mass production of 5nm technology, and is engaged in the research and development of 3nm process technology and 2nm process technology. The product application range covers the entire electronic application industry, including personal computers and peripheral products, information application products, wired and wireless communication system products, servers and data centers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
