Chip foundry company Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) could highlight strength for the semiconductor sector when the company reports third-quarter financial results before the market opens on Thursday.
Earnings Estimates: Analysts expect Taiwan Semiconductor Manufacturing to report third-quarter revenue of $31.50 billion, up from $23.50 billion in last year’s third quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in seven straight quarters.
Analysts expect the company to report third-quarter earnings per share of $2.59, up from $1.94 per share in last year’s third quarter.
The company has beaten analyst estimates for earnings per share in seven straight quarters.
The company’s guidance calls for third-quarter revenue to be in the range of $31.8 billion to $33.0 billion.
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Key Items to Watch: Taiwan Semiconductor shares trade near all-time highs, with the sector benefiting from growth in artificial intelligence and increased demand.
The company reported consolidated net revenue of NT$330.98 billion for September 2025, up 31.4% from a year earlier but down 1.4% from August.
September saw the company benefit from demand for advanced semiconductor nodes thanks to growth in the artificial intelligence and high-performance computing areas of the tech sector.
Key customers for Taiwan Semiconductor include Apple Inc (NASDAQ:AAPL) and NVIDIA Corporation (NASDAQ:NVDA), two of the three largest companies in the world by market capitalization.
The company is one of the key players in the chip sector. It has been able to see shares soar despite potential geopolitical issues in China and a potential trade war between the United States and China.
Recent large-scale deals announced in the technology space could increase the backlog demand for chips from Taiwan Semiconductor for its key clients.
Huan Nan Securities analyst Kevin Su said a rally in the stock price of Taiwan Semiconductor Manufacturing could suggest that the company is a key to the global AI supply chain.
In the second quarter, Taiwan Semiconductor achieved its seventh consecutive double beat and also provided guidance that helped boost investor confidence in the company.
Revenue was up 44% year-over-year in the second quarter, with gross margins also gaining 540 basis points to 58.6%.
The company’s CEO C.C. Wei highlighted the company’s investments in U.S. chip manufacturing and the U.S. government allowing key client Nvidia to resume sales of its AI chip to China as potential future catalysts.
Wei offered some caution about tariffs during the second-quarter earnings, but told investors and analysts that the company had not seen changes in customer behavior as a result of tariffs yet.
TSM Price Action: Taiwan Semiconductor stock is down 2.0% to $296.72 on Tuesday versus a 52-week trading range of $134.25 to $307.30. Taiwan Semiconductor shares are up 47.1% year-to-date in 2025.
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