- AI chip stocks rose after TSMC announced a 39% profit increase for Q3 2025.
- TSMC posted net income of $10.1 billion, beating analyst predictions.
- Strong results from TSMC reflected high demand in the semiconductor sector driven by Artificial Intelligence (AI).
- NVIDIA, Marvell Technology, and Broadcom shares gained following the results; Intel had a brief climb.
- TSMC expects Q4 revenue between $32.2 billion and $33.4 billion, with gross margins from 59% to 61%.
TSMC reported a 39% rise in profits for the third quarter of 2025, leading to an increase in AI chip stocks including Nvidia (NVDA) and Intel (INTC) on Thursday. TSMC shares reached record highs after the company announced net income of $10.1 billion, surpassing analysts’ forecasts.
The earnings figures, as detailed in the official TSMC report, underline continued demand for AI chips worldwide. After the announcement, Nvidia shares rose by 1.2%, Marvell Technology (MRVL) gained 1.3%, and Broadcom (AVGO) increased by 2.4%.
TSMC CEO C.C. Wei stated, “Recent developments in the AI market continue to be very positive. Thus, our conviction in the AI mega trend is strengthening.” The company expects AI’s influence in the chip industry to continue through at least 2026.
Earlier in the week, Nvidia had dropped 5%, but TSMC’s earnings announcement triggered a rebound. Intel saw a short-term increase of 2% before returning to $36 per share. Nvidia also received an upgraded price target from HSBC, which changed its rating to Buy based on the company’s earnings growth outlook.
AI-related stocks rose in early October after OpenAI reached a $500 billion valuation, becoming the most valuable startup and surpassing SpaceX. AvaTrade’s analyst Kate Leaman commented, “This isn’t just a transient spike. TSMC’s blowout quarter tells a clear story … this is no longer a cyclical story, it’s structural.” For the fourth quarter, TSMC projects revenue between $32.2 billion and $33.4 billion with gross margins between 59% and 61%.
Year to date, Nvidia shares are up more than 35%, while TSMC has climbed over 50%. Meeting or surpassing fourth-quarter expectations could drive TSMC stock even higher before year-end.
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