TSMC revenue jumps 41% to $46.7 billion, guides Q4 higher

TSMC's third-quarter revenue of $46.7 billion, up 41% from a year earlier, marked a record for the world's largest contract chipmaker. High-performance computing, the segment that includes AI data center chips, accounted for 68% of sales, underscoring how much of TSMC's business now rests on AI demand.

The company's fourth-quarter guidance of $52.3 billion to $54.3 billion implies growth of about 58% at the midpoint, an acceleration from the third quarter. That outlook came alongside comments from CEO C.C. Wei that demand for AI accelerators is "still far above our capability today to supply," and that sales of these chips could grow faster than the mid- to high-50s percentage rate annually through 2029 that TSMC had forecast.

Not everything is expanding. Smartphones accounted for 21% of third-quarter revenue, and rising component prices are pressuring demand in consumer electronics as device makers raise prices to offset cost inflation. Wei said TSMC is planning cautiously for 2027 given macroeconomic uncertainty. Even so, the stock trades at about 19 times analysts' 2027 earnings estimates, while Wall Street expects earnings to grow 38% annually over the next several years.