Taiwan Semiconductor Manufacturing Co is expected to report its sixth consecutive quarter of record profit this Thursday, as the world's largest maker of advanced AI chips continues to ride a wave of infrastructure spending sweeping through the technology sector.
Analysts expect the Taiwanese chip giant to post a 65 percent jump in third-quarter net profit to T$746.3 billion, or about $23.4 billion, according to an LSEG SmartEstimate compiled from 16 analysts.
Any result above T$706.56 billion would mark not only the company's highest-ever quarterly net income, but also its 11th straight quarter of profit growth.
The full earnings report is scheduled for Thursday, followed by an earnings call at 0600 GMT where executives will provide fourth-quarter and updated full-year guidance — numbers the market will watch closely for signs of where AI hardware demand is heading.
A record run powered by AI demand
The forecast follows a record-setting quarter for revenue. Last week, TSMC posted third-quarter revenue of NT$1.49 trillion, or roughly $46.71 billion, up 50 percent from the same period last year and ahead of market forecasts.
September alone brought in NT$511.86 billion, a 54.6 percent year-on-year increase.
Analysts point to unrelenting demand for the company's AI chipmaking capacity and its advanced CoWoS chip-packaging technology as the main drivers.
TSMC fabricates the processors that power Nvidia's AI accelerators and Apple's devices, placing it at the center of the global race to build out AI infrastructure.
The company is now Asia's most valuable listed firm, with a market capitalization of around $2.1 trillion — nearly double that of South Korean rival Samsung Electronics.
Its Taipei-listed shares have risen about 65 percent so far this year.
Raised guidance may be next
Morgan Stanley analyst Charlie Chan said in an October 6 report that he expects TSMC to raise its full-year revenue growth forecast to the low-to-mid 40 percent range, up from its current guidance of more than 40 percent, driven by strong demand for its 3-nanometre chips.
Such an upgrade would signal that the company sees no slowdown in AI hardware orders, even as investors scrutinize whether the massive capital spending by cloud and AI companies can be sustained.
Expanding footprint, and watching Thursday
TSMC is also expanding aggressively beyond Taiwan. The company is investing $265 billion to build chip factories in the US state of Arizona, including an additional $100 billion commitment unveiled in July.
For now, all eyes are on Thursday's results. If TSMC delivers the record profit analysts expect — and pairs it with stronger guidance — it would offer fresh evidence that the AI boom is still accelerating, with the chip industry's biggest foundry collecting the spoils.
By Hamza Faisal
