TSMC eyes record profits amid AI chip boom
Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest producer of advanced artificial intelligence chips, is expected to post a fourth straight quarter of record earnings, with net profit for January–March projected to jump by 50% amid strong demand for AI infrastructure.
Analysts say demand for TSMC’s 3-nanometre chip technology and its advanced packaging capabilities continues to exceed current production capacity. These technologies are crucial for manufacturing high-performance AI chips, News.Az reports, citing Reuters.
The surge has propelled Asia’s most valuable company—an essential supplier to Nvidia and Apple—to new heights. Its market capitalization has reached approximately $1.68 trillion, nearly double that of its South Korean rival, Samsung Electronics.
TSMC is expected to report a net profit of T$543.3 billion ($17.23 billion) for the first quarter on Thursday, based on an LSEG SmartEstimate compiled from 19 analysts. The SmartEstimate methodology gives more weight to analysts with stronger forecasting accuracy. The company is also scheduled to hold an earnings call at 0600 GMT, where it will provide guidance for the second quarter and updated projections for the full year.
A result exceeding T$505.7 billion would mark TSMC’s highest-ever quarterly net income and its ninth consecutive quarter of profit growth.
Last week, the company reported a 35% year-on-year increase in first-quarter revenue, surpassing market expectations.
While the ongoing conflict in the Middle East poses potential risks to the supply of key semiconductor materials such as helium and neon, analysts believe TSMC is well-positioned to manage these challenges.
Investors will also closely watch whether the company maintains or increases its 2026 capital expenditure plans, which are seen as an indicator of confidence in long-term AI demand. During its previous earnings call in January, TSMC projected capital spending of between $52 billion and $56 billion for this year, representing an increase of up to 37% compared with $40.9 billion in 2025.
The company is currently investing $165 billion to build semiconductor manufacturing facilities in the U.S. state of Arizona.
In addition, TSMC has adjusted its strategy in Japan and is now planning to produce advanced 3-nanometre chips there, instead of focusing on older-generation technologies.
TSMC’s shares listed in Taipei have risen 34% so far this year, outperforming the broader market, which has gained 27% over the same period.
News.Az
By Nijat Babayev
