Taiwan Semiconductor Manufacturing Company Limited (TSM) Announces Q3 2025 Results

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Most Promising AI Stocks to Buy Right Now. On October 16, the company announced its Q3 2025 results, with consolidated revenue coming at NT$989.92 billion, net income at NT$452.30 billion, and diluted earnings per share at NT$17.44 (US$2.92 per ADR unit). As compared to Q2 2025, the company saw 6.0% growth in revenue and a 13.6% rise in net income. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s business in Q3 2025 was aided by healthy demand for its leading-edge process technologies.

In Q3 2025, while the shipments of 3-nanometer made up for 23% of total wafer revenue, 5-nanometer accounted for 37% and 7-nanometer accounted for 14%. With the structural AI-related demand continuing to be robust, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has been investing to support customers’ growth. It is narrowing its range of 2025 capex to be between USD 40 billion – USD 42 billion compared to USD 38 billion – USD 42 billion previously. Notably, ~70% of the capital budget would be allocated for advanced process technologies, and ~10% to 20% will be for specialty technologies. Notably, ~10% – 20% is expected to be spent on advanced packaging, testing, mass making, and others.

Wedgewood Partners, an investment management company, released its Q3 2025 investor letter. Here is what the fund said:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was also a leading contributor to performance during the third quarter (as well as the past few years). Approximately 60% of the Company’s revenue is generated from manufacturing AI and high-performance computing (HPC) chips for leading semiconductor design companies, including Nvidia, Apple, Broadcom, Meta, Amazon and Alphabet. The Company offers the most manufacturing capacity at leading-edge nodes, a capability in high-demand as it enables customers to design more power-efficient chips against a backdrop of increasingly power-constrained data centers. The Company’s execution over the past several years has been nearly lawless, providing its customers with significant benefits in planning multi-year road maps that the entire IT industry is now adopting. The stock recently re-rated higher, exceeding our 10% maximum portfolio weight. As a result, we slightly trimmed our positions during the quarter.”

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Disclosure: None. This article is originally published at Insider Monkey.