US market opened flat on Thursday, supported by a positive earnings report from TSMC, a leading semiconductor manufacturer. The upbeat quarterly results increased investor confidence in the chip sector, extending gains in semiconductor stocks.
In the early hours of trading, the Dow Jones Industrial Average rose 35.8 points (0.08%) to 46,289.09. The S&P 500 gained 18 points (0.27%) to 6,689.02, while the Nasdaq Composite added 94.3 points (0.42%) to 22,764.40.
Taiwan Semiconductor Manufacturing Company (TSMC) released impressive financial results for the third quarter of 2025, over robust demand in AI, smartphones, and automotive sectors.
The company reported revenue of $33.1 billion, marking a 10.1% sequential increase and nearly 30% growth compared to the same quarter last year.
TSMC’s net profit reached a record NT$452.3 billion (approximately $14.75 billion USD), a 39.1% increase year-over-year, alongside a major rise in earnings per share.
Advanced process technologies, especially nodes of 7 nanometers and smaller, accounted for 74% of wafer revenue, with 3nm and 5nm nodes leading the surge in demand.
The company improved its gross margin to 59.5%, up 0.9 percentage points from the previous quarter, while maintaining strong operating and net profit margins of 50.6% and 45.7%, respectively.
TSMC’s cash and marketable securities totaled NT$2.8 trillion ($90 billion USD), with cash flow from operations reaching NT$427 billion during Q3. Capital expenditures were NT$287 billion.
Looking ahead, TSMC projects a slight 1% sequential revenue decline in Q4 2025 but expects full-year revenue growth close to the mid-30% range year-over-year in USD terms.
The company has adjusted its capital expenditure guidance for 2025 to $40-$42 billion. Despite ongoing geopolitical risks, TSMC remains confident in sustained AI demand and its position as a technology leader