TSMC, the world's largest advanced AI chip manufacturer, is set to announce a fourth consecutive quarter of record earnings, with a projected 50% surge in net profit for January-March. This remarkable growth is fueled by booming demand for AI infrastructure.
Analysts note that demand for TSMC's 3-nanometre technology and advanced packaging capabilities continues to exceed its current production capacity. This has propelled Asia's most valuable company, a critical supplier to Nvidia and Apple, to new heights, with its market capitalization nearly doubling that of Samsung Electronics.
TSMC is expected to report first-quarter net profit of approximately $17.23 billion. A profit exceeding $16.07 billion would mark the company's highest-ever quarterly net income and its ninth consecutive quarter of profit growth.
The company's strong performance is underscored by a recent 35% year-on-year rise in first-quarter revenue, surpassing market forecasts. Despite potential supply chain disruptions from geopolitical events, analysts believe TSMC is well-positioned to navigate these challenges.
Investors will be closely watching TSMC's capital spending plans, particularly its commitment to significant investments in new chip factories in Arizona and its expanded plans in Japan to manufacture advanced 3-nanometre chips.