Company Overview Taiwan Semiconductor Manufacturing Co. reported a 30% rise in third-quarter revenue on October 9, lifted by strong demand for artificial intelligence chips and steady orders from key clients such as Nvidia and Apple. Revenue for the July-to-September period reached T$989.92 billion (US$32.47 billion), topping market forecasts and surpassing an LSEG SmartEstimate of T$973.26 billion based on 22 analysts’ projections.
The timing is perfect—TSMC will release Q3 2025 earnings on October 16, with analysts expecting 25-30% revenue growth and updates on the 2nm ramp. What makes this particularly compelling is the increase in pre-order demand for TSMC’s highly anticipated 2-nanometer chips this year, which has exceeded that of the existing 3 and 5nm chips. In Q2 2025, TSMC captured about 70.2% of global foundry revenue according to TrendForce, a record market share, solidifying its position as the indispensable supplier to tech giants worldwide.
Key Technical and Fundamental Drivers
Last Week’s Revenue Beat → 30% Growth
TSMC’s October 9 report showed Q3 revenue of US$32.47 billion, up 30% year-over-year, topping analyst estimates, demonstrating sustained momentum in AI chip demand heading into full earnings.
Wednesday Earnings Catalyst → Q3 Details
Full Q3 2025 earnings release on October 16 will provide updates on the 2nm production ramp, with analysts eager for guidance on the revolutionary technology that’s seeing unprecedented demand.
2nm Chip Breakthrough → Exceeding Expectations
Pre-order demand for TSMC’s 2-nanometer chips has exceeded that of existing 3 and 5nm chips, signaling a major technology transition that could drive years of growth.
Record Market Share → 70.2% Dominance
TSMC captured 70.2% of global foundry revenue in Q2 2025, with nearly 74% of wafer revenue from 7nm and smaller technologies, cementing its monopoly on advanced chip production.
2025 Guidance Raised → 30% Growth Target
Company executives have revised the 2025 earnings forecast, calling for TSMC revenues to rise by 30% this year, reflecting confidence in sustained AI infrastructure buildout.
Market Takeaway TSMC enters Wednesday’s earnings report with extraordinary momentum. Last week’s 30% revenue growth announcement set the stage, but the real catalyst will be management’s commentary on 2nm production and the unprecedented pre-order demand that’s exceeding their most advanced existing technology. This isn’t just incremental growth—it represents a generational technology shift that TSMC is uniquely positioned to dominate, with over 70% market share in the foundry business.
The AI infrastructure boom shows no signs of slowing, and TSMC sits at the absolute center of it all. Every major AI chip—from Nvidia’s GPUs to Apple’s custom silicon—gets manufactured at TSMC’s facilities. The company’s ability to command record market share while simultaneously ramping next-generation 2nm technology demonstrates a competitive moat that’s virtually impenetrable. With Wednesday’s earnings just two days away, investors will be watching for any updates on production capacity, customer allocation for 2nm chips, and full-year guidance. The stock’s forward P/E of 19.5 looks remarkably reasonable given 30% revenue growth and a PEG ratio of 0.65, suggesting significant upside potential if management delivers strong commentary about the 2nm ramp and sustained AI demand through 2026.