TSMC posted a record quarterly profit for the sixth consecutive quarter, driven by strong AI chip demand and beating estimates. Its margin and cash flow also rose sharply.
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01Summary
- 01TSMC reported a record third-quarter net profit, up 68.7% from a year earlier, and beat LSEG SmartEstimates on Thursday.
- 02The company’s operating margin was 58.7%, above the top of its guidance range of 58%.
- 03High-performance computing made up 68% of revenue, while smartphones contributed 21%; 3-nanometre chips were the largest technology share at 33%.
- 04Free cash flow rose to NT$476.56 billion in the third quarter from NT$139.38 billion a year earlier, and the board approved a NT$7.00 cash dividend for the second quarter.
02Why it matters
TSMC is a key supplier to the global AI chip supply chain, so its results are a sign of strong demand across the semiconductor market. Its profits, margins and cash generation can also influence investor sentiment towards chip stocks more broadly.
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