TSMC Soars with AI Chip Demand: Record Profits Forecasted

TSMC, the world's leading AI chip manufacturer, expects a record 27% increase in fourth-quarter net profit, driven by rising demand for AI infrastructure. Analysts predict a net profit of $15.02 billion for the quarter, with strong future growth anticipated due to the burgeoning AI server accelerator market.

TSMC, recognized as the world's largest producer of advanced AI chips, forecasts a significant 27% increase in net profit for Q4, attributed to the surging demand for AI infrastructure. The Taiwan Semiconductor Manufacturing Company, a major supplier to tech giants Nvidia and Apple, anticipates a net profit of T$475.2 billion ($15.02 billion) for the quarter ending December 31, based on an LSEG SmartEstimate compiled from 19 analysts.

As Asia's most valuable publicly traded company, TSMC commands a market capitalization exceeding $1.38 trillion, dwarfing its competitor Samsung Electronics. The company is scheduled to disclose its earnings on Thursday, along with guidance for the first quarter and the full year, in an earnings call slated for 0600 GMT. Recently, TSMC recorded a better-than-expected fourth-quarter revenue increase of 20.45%, driven by full utilization of its 3-nanometer manufacturing capabilities.

While TSMC's ongoing expansion of overseas facilities may impact future profit margins, the company is actively investing $165 billion to establish chip factories in Arizona, USA. Despite potential tariff implications under U.S. trade policies, TSMC's shares listed in Taipei have seen a remarkable 44.2% increase over the last year, significantly outpacing the broader market rise of 25.7%.

(With inputs from agencies.)