TSMC expected to report sixth straight quarter of record profit thanks to AI boom
TSM•TSMC is expected to report third-quarter net profit up 65% to T$746.3 billion, its sixth consecutive quarterly record, after revenue rose 50% year on year to a record.
1. Profit forecast
Analysts expect Taiwan Semiconductor Manufacturing Co to report third-quarter net profit of T$746.3 billion ($23.4 billion), up 65% year on year. A result above T$706.56 billion would be the company’s highest-ever quarterly net income and its 11th consecutive quarter of profit growth.
2. AI demand and guidance
Analysts say demand for TSMC’s AI chipmaking capacity and CoWoS advanced packaging remains strong. The company’s earnings call is scheduled for Thursday at 0600 GMT, when it is expected to provide fourth-quarter and updated full-year guidance. Last week, TSMC said third-quarter revenue rose 50% year on year to a record, beating market forecasts.
3. Investment plans
TSMC is investing $265 billion to build chip factories in Arizona, including an additional $100 billion unveiled in July. It raised its capital expenditure forecast for this year in July to $60 billion-$64 billion, from a previous range of $52 billion-$56 billion.
