TSMC Stock Rises Nearly 2% Premarket After Q3 Earnings: Retail Traders Cheer Loudly

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (TSM), widely known as TSMC, climbed nearly 2% in Thursday’s early premarket session, with third-quarter earnings serving as an upside catalyst.

TSMC stock ended Wednesday’s session just off its all-time high of $30730 reached on Oct. 6, riding on the artificial intelligence (AI) revolution that has perked up demand for its advanced, high-performance chips. 

How TSMC’s Q3 Earnings Panned Out

Hsinchu, Taiwan-based TSMC reported earnings per ADR (EPS) of $2.92, up from $1.94 in the year-ago quarter and higher than the previous quarter’s $2.47. The results exceeded the $2.63 consensus, according to Stocktwits. 

The company confirmed the NT$989.92 billion revenue for the quarter it disclosed last week. On a U.S.-dollar basis, revenue jumped 40.8% year-over-year (YoY) and 10.1% sequentially to $33.10 billion, exceeding the $32.07 billion consensus estimate. TSMC attributed the revenue growth to strong demand for its leading-edge process technologies. 

The topline also topped the $31.8 billion to $33 billion guidance issued by the company in mid-July. By technology, the most advanced 3-nanometer (nm) process technology contributed 23% of total wafer revenue, while the 5nm and 7nm accounted for 37% and 14% respectively. These advanced technologies are used by its high-profile customers such as Nvidia, Apple, and AMD for high-performance computing (HPC) and AI applications and processes. 

By end market, HPC accounted for 57% of TSMC’s total revenue, and smartphones made up 30% of the total. North America contributed 76% of the total revenue.

Gross margin came in 59.5%, 1.7 percentage points (ppts) higher than last year, and up 0.9 ppts from the previous quarter. 

How Retail Reacted To TSMC Q3 Print

TSMC stock was among the top five trending equity tickers on Stocktwits. On Stocktwits, retail sentiment toward the stock moved further up within the ‘extremely bullish’ territory, and the message volume perked up to ‘extremely high’ levels.

A bullish watcher said the company “blew the door off estimates.”

Another user, who disclosed that they don’t own TSMC stock, said the strong earnings could set the tone for the rest of the sector.

What TSMC Forecasts

TSMC sounded upbeat about the near-term outlook. CFO Wendell Huang said, “Moving into the fourth quarter 2025, we expect our business to be supported by continued strong demand for our leading-edge process technologies.”

The company guided fourth-quarter revenue in the range of $32.2 billion to $33.4 billion compared to the Koyfin-compiled consensus estimate of $31.35 billion. The company predicts further expansion in gross margin to a range of 59%-61%.

Conversion rate (provided by company): 1 USD = 29.91 NT$

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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