TSMC set for record profits as AI demand surges

Taiwan Semiconductor Manufacturing Company is on track to deliver its fourth consecutive quarter of record-breaking profit, driven by explosive global demand for artificial intelligence chips.

Analysts expect the world’s leading chipmaker to report a 50% jump in net profit for the first quarter of 2026, highlighting how the AI boom continues to reshape the semiconductor industry, News.Az reports, citing Reuters.

The company, a key supplier to Nvidia and Apple, is benefiting more than most rivals from surging demand for advanced chips used in AI systems.

Strong interest in its cutting-edge 3-nanometre technology and advanced packaging solutions has pushed production capacity to its limits.

TSMC recently reported a 35% year-on-year increase in revenue for the January–March period, already beating market expectations.

According to analyst estimates, TSMC could post a net profit of around T$542.6 billion ($17.1 billion) for the quarter.

Any figure above T$505.7 billion would mark:

• The highest quarterly profit in the company’s history
• A ninth straight quarter of profit growth

The earnings announcement is scheduled for Thursday, when the company will also provide updated guidance for the rest of 2026.

TSMC’s rapid growth has cemented its position as Asia’s most valuable company, with a market value of about $1.6 trillion—nearly double that of Samsung Electronics.

Its shares have climbed 28% so far this year, outperforming the broader market.

The chip giant is aggressively expanding to meet demand:

• Investing $165 billion in new factories in Arizona
• Upgrading plans in Japan to produce advanced 3nm chips

Analysts say future capital spending decisions will be closely watched as a signal of how confident TSMC is in long-term AI growth.

Ongoing tensions in the Middle East could disrupt supplies of key semiconductor materials like helium and neon. However, experts believe TSMC is well-prepared.

With diversified sourcing and strong запас reserves, the company is expected to handle short-term disruptions without major impact.

Industry experts expect continued revenue growth in the second quarter, driven by sustained demand for AI infrastructure and TSMC’s leadership in advanced chip technology.

As the AI race accelerates, TSMC remains at the center of the global tech supply chain—and its record-breaking streak may not be over yet.

News.Az 

By Aysel Mammadzada