Taiwan Semiconductor Manufacturing Co (TSMC) (TW:2330) is on track to report third-quarter revenue above its own guidance, helped by robust demand for artificial intelligence chips and improving non-AI segments, Bernstein analysts said on Wednesday.
TSMC posted August revenue of NT$336 billion ($11.1 billion), up 4% from July and 34% year-on-year. Combined July and August sales reached NT$659 billion, equal to 70% of the company’s third-quarter guidance midpoint.
That ratio is higher than the historical range of 63-67%, suggesting revenue could end up about 8% above guidance and nearly 7% ahead of consensus if September follows seasonal trends, Bernstein said.
Bernstein reiterated its “Outperform” rating with a price target of NT$1,444, implying nearly an 18% upside to Tuesday’s closing price.
While foreign exchange provided a 2.6% tailwind, analysts noted the strength cannot be fully explained by currency moves. They forecast TSMC’s revenue will grow 33% in 2025, outpacing the company’s guidance of 30%, citing strong export data and signals of sustained AI demand into 2026.
Non-AI demand, boosted in part by tariff-related pull-ins, is also showing signs of acceleration, analysts added.
Bernstein said price hikes of 5-10% on 5-nanometer and more advanced nodes starting in the first quarter of 2026 should help offset foreign exchange headwinds and rising overseas costs.
Source :
https://www.investing.com/news/stock-market-news/tsmc-q3-revenue-seen-topping-guidance-on-strong-monthly-prints-bernstein-4234669
