Taiwan Semiconductor Rallies On Big October Sales And Growing Nvidia Demand

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) stock advanced on Monday after the company reported solid October financial results, underscoring continued momentum in advanced chip demand.

The chipmaker posted consolidated net revenue of approximately 367.47 billion New Taiwanese dollars for October 2025, up 16.9% year-over-year and 11.0% from the prior quarter.

Revenue for January through October reached 3.13 trillion New Taiwanese dollars, marking a 33.8% increase from the same period last year.

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TSMC shares have gained more than 45% year-to-date, outperforming the PHLX Semiconductor Index's roughly 40% return, reflecting its central role in the global AI computing boom.

Nvidia CEO Presses for More Capacity Amid AI Boom

The company deepened ties with Nvidia Corp (NASDAQ:NVDA) last week following CEO Jensen Huang's visit to Taiwan, where he met Taiwan Semiconductor CEO C.C. Wei over dinner in Taipei.

Huang highlighted the company's importance to Nvidia's expansion, noting that AI chip demand is growing “month by month” and prompting his request for additional wafer supply.

TSMC remains a critical supplier for Nvidia's Blackwell AI platform, which continues to see surging global demand even as U.S. export restrictions evolve.

Speaking in Hsinchu, Huang credited Taiwan Semiconductor for reliable wafer support and described the partnership as essential to Nvidia's performance in advanced AI markets.

Rising AI Demand Fuels Growth Outlook

CEO C.C. Wei confirmed Huang's request for increased wafer capacity but did not disclose further details.

The Blackwell systems are expected to drive an estimated $5 billion to $6 billion in Nvidia's next-quarter revenue, reinforcing TSMC's importance at the heart of AI hardware supply chains.

The company's advanced node leadership positions it as a key beneficiary of accelerating compute demand from hyperscale customers.

North America Investment Ramps Up

Taiwan Semiconductor also strengthened its U.S. footprint, naming Sajiv Dalal as CEO of its North American operations.

The appointment signals continued investment in the region amid renewed tariff concerns following President Trump's policy stance.

In August, the company reported its first-ever profit from its Arizona manufacturing operations in 2025, a milestone as domestic capacity continues to scale.

Price Action: TSM shares were trading higher by 2.93% to $294.90 premarket at last check Friday.

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