Taiwan Semiconductor Manufacturing Co. (TSMC), the powerhouse behind cutting-edge chips for artificial intelligence, is poised to announce a staggering 42% increase in its third-quarter profit this Thursday. This impressive growth comes as demand for AI technology skyrockets across various sectors, positioning TSMC as a key player in the tech revolution.
With heavyweights like Apple and Nvidia among its clients, TSMC is set to report a net profit of T$300.1 billion (approximately $9.33 billion) for the quarter ending September 30. This marks a significant leap from last year’s T$211 billion, according to a SmartEstimate from LSEG, which emphasizes forecasts from the most reliable analysts in the field.
Just last week, TSMC revealed a robust increase in revenue, surpassing market expectations. Investors are eagerly awaiting the company’s fourth-quarter revenue guidance, which will be presented in U.S. dollars.
However, it hasn’t been all smooth sailing in the semiconductor sector. Recently, ASML, the leading supplier of chip-making equipment, issued a forecast for lower-than-expected sales and bookings in 2025, contributing to a steep decline in its stock—a drop not seen since 1998.
Despite this turbulence, TSMC’s shares ended Wednesday down just 2.3% at T$1,045, remaining close to their all-time high of T$1,080 reached in July.
During its upcoming earnings call at 0600 GMT on Thursday, TSMC is expected to provide insights into its outlook for the current quarter and the full year, including plans for capital expenditure as it races to ramp up production. The chipmaker is investing heavily in new facilities abroad, with a staggering $65 billion allocated for three plants in Arizona. Nevertheless, TSMC has indicated that the majority of its manufacturing will continue to be based in Taiwan.
In its last earnings call in July, TSMC raised its full-year revenue forecast and adjusted its capital expenditure plans to between $30 billion and $32 billion, up from a previous estimate of $28 billion to $32 billion.
The second half of the year is typically a peak season for Taiwanese tech firms as they gear up to meet year-end demand in major Western markets. Fueled by the AI boom, TSMC’s stock has surged an impressive 76% this year, significantly outpacing the broader market’s 28% gain.
Revered in Taiwan as the “sacred mountain protecting the country” due to its pivotal role in the nation’s export-driven economy, TSMC currently faces little competition, though rivals like Intel and Samsung are making strides to challenge its dominance.
As TSMC gears up to unveil its Q3 results, the world will be watching closely to see how this titan of the semiconductor industry continues to navigate the evolving landscape shaped by the AI revolution.
hii Aditi Sahu this side..
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