Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, is poised to announce a remarkable 40% increase in its third-quarter profits, reflecting the skyrocketing demand for advanced chips used in artificial intelligence (AI) applications.
TSMC, whose prestigious clientele includes tech giants like Apple and Nvidia, has been at the forefront of meeting the surging needs of the AI industry. The company’s net profit for the quarter ended September 30 is projected to reach an impressive $9.27 billion, according to an LSEG SmartEstimate derived from 22 analysts. SmartEstimates place greater emphasis on forecasts from the most consistently accurate analysts.
This anticipated profit marks a significant leap from the $6.69 billion net profit reported in the same period last year. The AI boom has not only boosted TSMC’s financial performance but also propelled its stock market value. TSMC’s Taipei-listed shares have soared by 77% so far this year, outpacing the broader market’s 28% gain, highlighting investor confidence in the company’s strategic positioning.
During its quarterly earnings call scheduled for 6 a.m. on Thursday, TSMC is expected to update its outlook for the current quarter and the full year. The company will provide insights into its capital expenditure plans as it races to expand production capabilities to meet the escalating demand.
In its previous earnings call in July, TSMC raised its full-year revenue forecast and adjusted its capital expenditure plans for this year to between $30 billion and $32 billion, up from an earlier projection of $28 billion to $32 billion. This strategic investment underscores TSMC’s commitment to maintaining its leadership in the semiconductor industry.
Meanwhile, industry veteran Intel is facing challenges as it contends with mounting losses in its contract manufacturing unit, which it is developing in hopes of competing with TSMC. Once the dominant force in the semiconductor industry, Intel’s struggles highlight the shifting dynamics of the global chip market.
TSMC’s anticipated financial results underscore its pivotal role in the global technology supply chain, especially as the demand for AI applications continues to surge. Stakeholders worldwide—from business professionals and investors to academics and tech enthusiasts—are observing TSMC’s performance as a barometer of industry trends and economic shifts.
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TSMC 3rd-quarter profit to jump by 40% amid rising chip demand
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