Riding the global AI boom, TSMC’s October revenue soared nearly 17% YoY, reflecting surging demand for advanced chips even as investors eye signs of cooling momentum.
Taiwan Semiconductor Manufacturing Company (TSMC) reported a 16.9% year-on-year (YoY) increase in October revenue, driven by robust global demand for artificial intelligence (AI) chips. The chipmaker reported sales of T$367.47 billion (US$11.86 billion), up 11% from September.
From January to October 2025, TSMC’s total revenue reached T$3.13 trillion, marking a 33.8% increase from the same period last year. According to reports, the gains reflect continued investment in data centres and high-performance computing, as tech giants expand capacity to power AI applications.
A major supplier to NVIDIA, TSMC’s performance has closely tracked the chip designer’s success. NVIDIA’s Chief Executive Officer Jensen Huang recently said he had asked TSMC to boost chip supplies, citing persistent global demand for advanced AI processors.
Despite the strong numbers, Bloomberg noted that October’s growth was TSMC’s slowest since February 2024, prompting concerns that the AI stock rally may be running ahead of real industry demand.
Analysts, however, noted that earlier order pull-ins and currency effects can distort the figures. In US dollar terms, October revenue rose 22.6% to US$12 billion.
Shares of TSMC remained steady in Taipei on Tuesday as investors weighed the outlook for the AI chip market. Industry analysts continue to see strong long-term momentum, driven by massive capital spending from major tech firms.
Meanwhile, Meta, Alphabet, Amazon and Microsoft plan to invest more than US$400 billion in AI infrastructure next year, a 21% rise from 2025 levels. NVIDIA’s Huang remains upbeat, saying business is “growing month by month”.
TSMC Chief Executive Officer C.C. Wei recently confirmed that capacity remains tight, as the company works to bridge the gap between surging demand and limited supply.
