TSMC's Third-Quarter Profit Expected to Increase by 40% Due to Growing Chip Demand
TSMC is poised to see a 40% increase in profits for the third quarter, driven by a surge in chip demand.
TroibNews 
Taiwan Semiconductor Manufacturing Co. (TSMC), a leading name in the chip industry, is anticipated to announce a 40 percent increase in its third-quarter profits on Thursday, driven by a heightened demand for advanced chips utilized in artificial intelligence applications.
As the world's largest contract chipmaker, TSMC serves notable clients such as Apple and Nvidia and has reaped benefits from the burgeoning AI market.
For the quarter ending September 30, TSMC is projected to report a net profit of $9.27 billion, according to an LSEG SmartEstimate, which aggregates insights from 22 analysts and gives more weight to the predictions of those with a proven track record for accuracy. This figure marks a significant rise from the third-quarter net profit of approximately $6.69 billion in 2023.
In its earnings call scheduled for 6 a.m. on Thursday, TSMC will present updates on its current quarter outlook as well as for the full year, which will include details on its capital expenditures as it strives to increase production capacity.
During its previous earnings call in July, TSMC had already raised its revenue expectations for the full year and revised its capital expenditure forecasts to a range between $30 billion and $32 billion, up from an earlier estimate of $28 billion to $32 billion.
The surge in AI demand has positively influenced TSMC's stock, with shares listed in Taipei skyrocketing 77 percent this year, in contrast to a 28 percent rise in the broader market.
Meanwhile, Intel, once a dominant player in the semiconductor field, is grappling with significant challenges as losses accumulate in its contract manufacturing unit, which is being developed in an effort to compete with TSMC.
Lucas Dupont contributed to this report for TROIB News
As the world's largest contract chipmaker, TSMC serves notable clients such as Apple and Nvidia and has reaped benefits from the burgeoning AI market.
For the quarter ending September 30, TSMC is projected to report a net profit of $9.27 billion, according to an LSEG SmartEstimate, which aggregates insights from 22 analysts and gives more weight to the predictions of those with a proven track record for accuracy. This figure marks a significant rise from the third-quarter net profit of approximately $6.69 billion in 2023.
In its earnings call scheduled for 6 a.m. on Thursday, TSMC will present updates on its current quarter outlook as well as for the full year, which will include details on its capital expenditures as it strives to increase production capacity.
During its previous earnings call in July, TSMC had already raised its revenue expectations for the full year and revised its capital expenditure forecasts to a range between $30 billion and $32 billion, up from an earlier estimate of $28 billion to $32 billion.
The surge in AI demand has positively influenced TSMC's stock, with shares listed in Taipei skyrocketing 77 percent this year, in contrast to a 28 percent rise in the broader market.
Meanwhile, Intel, once a dominant player in the semiconductor field, is grappling with significant challenges as losses accumulate in its contract manufacturing unit, which is being developed in an effort to compete with TSMC.
Lucas Dupont contributed to this report for TROIB News
