TSMC posted record third-quarter revenue of T$1.49 trillion ($46.71 billion) on Thursday, a 50% jump from the year-earlier period and ahead of the T$1.46 trillion consensus drawn from 19 analysts in an LSEG SmartEstimate.

The world's largest contract chipmaker reported July-September revenue up from T$989.92 billion in the same quarter last year, according to Reuters calculations. An LSEG SmartEstimate covering 19 analysts had predicted T$1.46 trillion. TSMC supplies Nvidia and Apple, among other major customers.

How did the result compare with company guidance?

The figure also exceeded the company's own forecast. On its July earnings call, TSMC guided third-quarter revenue to between $44.6 billion and $45.8 billion. The company issues guidance only in US dollars, not Taiwan dollars. Actual revenue of $46.71 billion cleared the top end of that range by roughly $900 million.

September alone delivered a strong finish: monthly revenue rose 54.6% year-on-year to T$511.86 billion.

What drove the 50% growth?

Surging demand for AI applications underpinned the quarter, according to the company's statement. The figure aligns with broader sector momentum. Samsung Electronics, reporting on the same day, projected quarterly operating profit above 100 trillion won — a world first for a technology company — estimating a nearly nine-fold jump in third-quarter earnings on booming AI chip demand that drove strong memory sales.

What comes next?

TSMC did not provide details or forward guidance in its brief revenue statement. The company is scheduled to report full third-quarter earnings next Thursday, October 15, when it will update its outlook and its plans for the current quarter and the rest of the year.

An LSEG SmartEstimate puts expected third-quarter net profit at T$740.8 billion, which would represent a 64% rise year-on-year.

How did the market react?

TSMC's Taipei-listed shares closed down 1.35% on Thursday, ahead of the revenue release. The broader market also closed down 1%. The shares have risen 64.52% so far this year, in line with the wider market.

TSMC remains Asia's most valuable publicly listed company, with a market capitalisation of $2.1 trillion. The exchange rate applied in the figures is $1 = 31.9020 Taiwan dollars.