TSMC expected to report sixth straight quarter of record profit thanks to AI boom

Business Recorder reported that Taiwan Semiconductor Manufacturing Co (TSMC) is likely to post a sixth straight quarter of record earnings, supported by heavy spending on tech infrastructure. Analysts said demand for the company's AI chipmaking capacity and its CoWoS advanced packaging technology remains strong. The firm, a key supplier to Nvidia and Apple, now has a market value of about $2.1 trillion, almost double that of South Korea's Samsung Electronics.

According to an LSEG SmartEstimate built from 16 analysts' forecasts, TSMC is expected to show a 65% jump in net profit for the third quarter to T$746.3 billion ($23.4 billion) when it reports on Thursday. Any figure above T$706.56 billion would be the company's highest quarterly net income ever and an 11th straight quarter of profit growth. Last week, the company reported third-quarter revenue up 50% year on year, beating forecasts and reaching a record high.

The company is putting $265 billion into its Arizona chip plants, an amount that includes an extra $100 billion unveiled in July. Business Recorder noted that Reuters had reported in September that TSMC was weighing a potential Texas investment, while Morgan Stanley analyst Charlie Chan said an expansion there could become necessary. Morningstar's Phelix Lee, however, saw limited urgency, since some of the planned Arizona fabs have yet to be built.