TSMC, the world's leading advanced chip manufacturer, is set to announce a fourth straight quarter of record earnings, projecting a 50% surge in net profit for January-March. This growth is fueled by overwhelming demand for AI infrastructure.
Analysts report that the company's 3-nanometre technology and advanced packaging capabilities for AI chips continue to exceed its current production capacity. This surge has propelled TSMC's market capitalization to nearly double that of its rival, Samsung Electronics.
For the first quarter, TSMC is expected to report a net profit of T$542.6 billion ($17.1 billion). Any figure above T$505.7 billion would represent its highest quarterly net income and extend its profit growth streak to nine consecutive quarters.
The company's revenue also saw a significant 35% year-on-year increase in the first quarter. Looking ahead, sustained AI demand and TSMC's leadership in advanced-node technology are expected to drive strong revenue growth in the second quarter.
Despite potential disruptions to raw material supply chains, TSMC is considered well-positioned to manage the impact due to diversified sourcing and substantial safety stock. Investors will be closely watching capital spending plans, which will signal management's confidence in long-term AI demand.
TSMC is currently investing $165 billion in chip factories in Arizona and has expanded its plans in Japan to include 3-nanometre chip manufacturing. The company's Taipei-listed shares have risen 28% year-to-date.