In the third quarter of 2025, TSMC reported revenue of $33.10 billion, up 40.8% year-over-year, comfortably exceeding consensus forecasts. Net income reached $15.1 billion, driving a 45.7% net profit margin and diluted EPS of $0.58, a 39% increase versus Q3 2024. The company also issued Q4 guidance for revenue between $32.2 billion and $33.4 billion, which at the midpoint implies 22% year-over-year growth. These results underscore TSMC’s ability to capture surging demand for advanced nodes and validate its capacity expansion plans in Taiwan and at overseas fabs.

TSMC continues to extend its technological lead with roll-outs of 3 nanometer and 5 nanometer processes. In Q3, 3 nm chips contributed 23% of total revenue, while 5 nm accounted for 37%, confirming strong adoption by key customers across AI, high-performance computing and mobile markets. The firm’s 2 nm node has recently entered volume production, positioning it to service next-generation designs from leading fabless companies. Plans for additional capacity at its Hsinchu and Arizona sites are underway to meet multi-year orders for fleets of data-center GPUs and custom SoCs.

TSMC’s market capitalization stands near $1.7 trillion, supported by a gross margin of 57.75% and a dividend yield of 0.94%. The stock rallied 53% in 2025 as investors rewarded the company’s foundry dominance and capital-efficient expansion strategy. Of 17 surveyed analysts, 15 rate TSMC as a Buy and two as Hold, with price targets implying room for upside based on forecasts of sustained AI infrastructure spending. While geopolitical tensions and export licensing remain variable factors, TSMC’s unrivaled capacity and technology roadmap keep it at the center of the global semiconductor supply chain.