TSMC Set to Report 42% Q3 Profit Rise Amid Soaring AI Chip Demand

CIOTechOutlook Team | Thursday, 17 October 2024, 08:54 IST

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Taiwan Semiconductor Manufacturing Co, the top manufacturer of cutting-edge chips for artificial intelligence uses, is anticipated to announce a 42% increase in third-quarter earnings on Thursday due to surging demand.

The biggest manufacturer of contracted chips in the world, which serves clients such as Apple and Nvidia, has profited from a rise in demand for AI technology across various sectors.

According to estimates from 23 analysts, TSMC is expected to announce a net profit of T$300.1 billion ($9.33 billion) for the quarter ending on Sept. 30. SmartEstimates prioritize predictions from analysts with a history of consistently accurate forecasts. The estimate is in comparison to the T$211 billion net profit in the third quarter of 2023.

Last week, TSMC announced a significant increase in third-quarter revenue in Taiwan dollars, surpassing predictions from the market. It will provide a forecast for fourth-quarter sales in U.S. currency. However, ASML, the largest supplier of chipmaking equipment in the world to companies like TSMC, predicted lower sales and bookings for 2025 on Tuesday due to continued weakness in certain areas of the chip market, causing the Dutch company's shares to experience their largest one-day decline since 1998.

TSMC's stock ended Wednesday down 2.3% at T$1,045, close to their record high of T$1,080 reached on July 11. During its quarterly earnings call at 0600 GMT on Thursday, TSMC will provide updates on its projections for the current quarter and full year, including capital expenditure, as it hastens production expansion.

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