TSMC’s Blockbuster Results Signal Continued AI Boom, Benefiting Nvidia

Taiwan Semiconductor Manufacturing Company (TSMC) delivered staggering third-quarter results, with revenue surging 30% year-over-year to NT$989.9 billion ($33.1 billion). Earnings per share soared 39% to NT$17.44 ($2.92 per ADR), demolishing analyst expectations of $1.95 EPS. The semiconductor giant's performance serves as a bellwether for the AI industry's unrelenting expansion.

Nvidia, whose GPUs are manufactured by TSMC, stands as the primary beneficiary of this growth. The chipmaker's market capitalization recently eclipsed $4 trillion, fueled by insatiable demand for AI accelerators. TSMC's results suggest the AI adoption curve remains steep, with CFO Wendell Huang citing cost efficiencies as a key profit driver.

The semiconductor supply chain's strength contradicts growing market skepticism about peak AI demand. TSMC's technology leadership positions it as the linchpin for next-generation AI hardware, from data center chips to edge computing devices. This vertical integration creates a virtuous cycle for Nvidia's ecosystem.