TSMC likely to book fourth straight quarter of record profit on insatiable AI demand

By Wen-Yee Lee and Ben Blanchard

TAIPEI, April 13 (Reuters) - TSMC (TSM) , the world's largest shaper of precocious artificial quality chips, volition apt notch up a 4th consecutive 4th ‌of grounds net with a 50% surge successful nett net for January-March acknowledgment to ‌booming request for AI infrastructure.

Analysts accidental that request for Taiwan Semiconductor Manufacturing Co's 3-nanometre exertion to nutrient AI chips and its ​advanced packaging exertion continues to outstrip the firm's existent accumulation capacity.

That's driven Asia's astir invaluable company, a cardinal supplier to Nvidia and Apple, to caller heights. Its marketplace capitalisation is present astir treble that of South Korean rival Samsung Electronics astatine astir $1.6 trillion.

On Thursday, TSMC is expected to study a ‌net nett of T$542.6 cardinal ($17.1 ⁠billion) for the quarter, according to an LSEG SmartEstimate compiled from 19 analysts. SmartEstimates spot greater value connected forecasts from analysts who are much consistently accurate.

An ⁠earnings telephone astatine which it volition supply second-quarter and updated full-year guidance is scheduled for 0600 GMT.

Any nett effect supra T$505.7 cardinal would people the company's highest-ever quarterly nett income and its ninth consecutive 4th of ​profit ​growth.

Last week, it posted a 35% year-on-year emergence successful ​first-quarter gross nL6N40T0G0, up of marketplace ‌forecasts.

Looking ahead, "we expect higher quarter-on-quarter gross maturation guidance for the 2nd 4th of 2026, driven by sustained AI request and advanced-node leadership," Arthur Lai, caput of exertion probe for Asia astatine Macquarie Capital, said successful a enactment to clients.

The warfare successful the Middle East threatens to disrupt the proviso of accumulation materials for semiconductors specified arsenic helium and neon, but TSMC is seen arsenic ‌well-placed to upwind the crisis.

"TSMC's diversified sourcing and information ​stock should beryllium capable to negociate short-term disruptions," said Galen ​Zeng, elder probe manager astatine IDC.

One ​area of absorption volition beryllium whether TSMC maintains oregon raises its 2026 superior ‌spending plans arsenic that volition bespeak management's ​confidence successful semipermanent AI ​demand, Zeng said.

TSMC is investing $165 cardinal to physique spot factories successful the U.S. authorities of Arizona.

The institution has besides revised its plans successful Japan and is present acceptable to ​manufacture 3-nanometre chips there, alternatively of ‌focusing connected much mature nodes.

TSMC's Taipei-listed shares person gained 28% truthful acold this year, ​outperforming the 22% emergence for the broader market.