When the world’s biggest contract chipmaker beats expectations and lifts its outlook, markets listen. Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) did exactly that this week — and in doing so reignited global enthusiasm for AI infrastructure and semiconductor stocks.
TSMC’s quarter lights up the sector
TSMC reported a record net profit of NT$452.3 billion (~US$14.8 billion) for the September quarter, up 39% year-on-year, on revenue of NT$989.9 billion — comfortably ahead of forecasts. It also raised full-year revenue growth guidance to the mid-30% range, citing unrelenting demand for AI chips and advanced nodes.
Margins held firm near historic highs, helped by favourable exchange rates and premium-node pricing. Despite overseas expansion costs and ongoing geopolitical uncertainty, management signalled the AI build-out is still in its early stages. Capital spending remains steady at US$38 billion–42 billion this year.
Management acknowledged ongoing US export restrictions and a slowdown in China’s logic demand as headwinds, though reiterated that AI-driven advanced-node growth more than offsets these pressures.
Markets responded swiftly. TSMC shares jumped in Taipei, setting the tone for a global semiconductor rally. In the US, the Philadelphia Semiconductor Index climbed alongside heavyweights such as Nvidia Corp (NASDAQ:NVDA, ETR:NVD), Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD) and ASML Holding NV (NASDAQ:ASML, ETR:ASME), with the Nasdaq Composite advancing on renewed confidence that the AI hardware cycle still has room to run. ASML was among the strongest performers, buoyed by expectations that TSMC’s robust capex plans will sustain demand for its advanced lithography systems.
Oracle and ASML join the AI build-out
Also fuelling sentiment today, Oracle Corp (NYSE:ORCL, ETR:ORC) forecast its cloud-infrastructure revenue could reach US$166 billion by FY2030, driven largely by AI workloads. The company’s shares jumped around 5%, helped by news it will deploy 50,000 of AMD’s next-gen MI450 GPUs in new AI superclusters from 2026. The partnership gives AMD more leverage against Nvidia, while Oracle gains hardware depth for its AI-cloud push.
ASML, meanwhile, extended gains as investors bet on rising orders from foundries and logic producers. TSMC’s spending plans are set to support another strong year for equipment makers, even as non-AI demand stays patchy.
ASML also flagged weaker orders from China due to export curbs, but investors focused on resilient demand from leading-edge fabs tied to AI. Analysts say the long-term shift toward higher-end manufacturing keeps ASML’s growth story intact.
AI infrastructure deals keep flowing
The past week underscored how fast capital is chasing AI infrastructure:
- OpenAI and AMD sealed a multi-year chip-supply pact worth tens of billions, with potential equity incentives attached.
- Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) finalised nearly US$30 billion in project financing for its Hyperion data centre in Louisiana, using a new special-purpose vehicle model that could reshape hyperscale funding.
- BlackRock Inc (NYSE:BLK), Microsoft Corp (NASDAQ:MSFT), and Nvidia joined forces to acquire Aligned Data Centers for about US$40 billion, one of the largest AI-infrastructure takeovers to date.
- Micron Technology Inc (NASDAQ:MU) shares remain up more than 130% this year on AI-memory demand and tight supply.
- Analysts at Omdia now see the AI-data-centre chip market hitting US$286 billion by 2030.
Closer to home, Firmus Technologies announced a A$73 billion plan with Nvidia and CDC Data Centres to build hyperscale AI campuses across Australia by 2028, beginning in Tasmania and Melbourne.
The bigger picture
TSMC’s results reaffirm that the AI hardware build-out isn’t plateauing — it’s accelerating. From foundries and toolmakers to cloud platforms and data-centre financiers, the supply chain is expanding in lockstep.
While risks remain — from trade restrictions to geopolitical friction — investors are reading the company’s confidence as a signal that AI demand has staying power. Oracle’s cloud ambitions and ASML’s tailwinds echo that same conviction.
The message for markets is clear: the AI boom is maturing, not cooling. TSMC’s stellar quarter has turned up the heat — and reminded investors that the world’s appetite for compute power is still growing faster than the chips that feed it.