TSMC Revenue Riding on AI Demand

Taiwan Semiconductor Manufacturing Co (TSMC), the leading producer of advanced chips crucial for artificial intelligence (AI) applications, is expected to report a 40% surge in third-quarter profits on Thursday, driven by soaring AI demand. This net profit is forecasted at T$298.2 billion ($9.27 billion) for the quarter ending September 30, up from T$211 billion in the same period of 2023, according to a LSEG SmartEstimate.

TSMC's clients, including Apple, Nvidia, AMD, Qualcomm, and MediaTek, have launched new products that heavily rely on TSMC’s advanced chip technologies. Li Fang-kuo, chairman of President Capital Management, expects the company’s earnings to exceed expectations, citing robust demand across these tech giants.

In its previous earnings call, TSMC raised its full-year revenue forecast and revised its capital expenditure plans to $30 billion to $32 billion. The company is also expanding its production capacity overseas, with $65 billion invested in building three factories in Arizona, USA, though most manufacturing remains in Taiwan.

TSMC’s stock has soared 77% this year, benefiting from the AI boom, and continues to dominate the semiconductor industry while its competitor Intel struggles to recover market share.