TSMC will likely report a sixth consecutive quarter of record earnings on Thursday, according to Reuters. Analysts expect a 65% jump in third-quarter net profit as AI chip demand stays strong. The company will also provide fourth-quarter and updated full-year guidance.
TSMC, the world's largest manufacturer of advanced AI chips, will likely report a sixth consecutive quarter of record earnings on Thursday. Reuters ties the expected result to booming infrastructure spending in the tech sector.
Analysts say demand for its AI chipmaking capacity and its CoWoS advanced chip packaging technology remains strong. That has lifted Asia's most valuable company, a key supplier to Nvidia and Apple. Its market capitalization is almost double that of Samsung Electronics at around $2 trillion.
Analysts expect a 65% jump in net profit
On its Thursday earnings call, TSMC is expected to report a 65% surge in third-quarter net profit to T$746.3 billion ($23.4 billion), according to an LSEG SmartEstimate compiled from 16 analysts. SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate.
Any result above T$706.56 billion would mark the company's highest-ever quarterly net income, as well as its 11th consecutive quarter of profit growth. The call, scheduled for 0600 GMT, will also cover fourth-quarter and updated full-year guidance.
Revenue, spending and share gains
Last week, TSMC reported a 50% year-on-year rise in third-quarter revenue, beating market forecasts and hitting a new record. Meanwhile, the company is investing $265 billion to build chip factories in Arizona, including an additional $100 billion unveiled in July.
On its July earnings call, TSMC raised its capex forecast for this year to between $60 billion and $64 billion from a previous prediction at the high end of $52 billion to $56 billion. Its Taipei-listed shares have gained 63% so far this year, broadly in line with a 69% rise for the broader Taiwanese market.
In September, Reuters reported that TSMC was evaluating a potential investment in Texas.
Source: Investing.com
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