Taiwan Semiconductor Manufacturing Company (NYSE:TSMC) is poised to deliver another record-breaking quarter on Thursday.
AI Demand Drives Record Earnings Growth
TSMC is expected to report a net profit of about $17.2 billion for the January–March quarter, marking a roughly 50% year-over-year increase, Reuters reported on Wednesday, citing LSEG SmartEstimate.
A result above prior records would extend its streak of consecutive quarterly profit growth to nine.
The world's largest contract chipmaker has been a key beneficiary of the AI boom, supplying advanced semiconductors to major clients such as Nvidia Corp (NASDAQ:NVDA) and Apple Inc. (NASDAQ:AAPL).
Advanced Chip Demand Outpaces Supply
Strong demand for TSMC's 3-nanometer chips and advanced packaging technologies — essential for high-performance AI workloads — continues to exceed available capacity, analysts said.
TSMC's market capitalization has surged to roughly $1.68 trillion, nearly double that of rival Samsung Electronics (OTC:SSNLF).
The company previously guided for up to $56 billion in spending this year and is investing $165 billion in U.S. fabrication plants, alongside expanding advanced production in Japan.
Geopolitical Risks Loom, But Outlook Remains Strong
While tensions in the Middle East could disrupt supplies of key semiconductor materials like helium and neon, analysts believe TSMC remains well-positioned to navigate potential shocks, the report said.
TSMC Q1 Revenue, EPS Seen Jumping Year-Over-Year
Analysts project TSMC to post first-quarter revenue of $35.50 billion, a sharp increase from $25.53 billion in the same period last year, according to Benzinga Pro data.
The company has already indicated strong momentum, reporting $35.6 billion in quarterly revenue based on its March sales figures — a 35.1% year-over-year rise and a new record for the chipmaker.
On the bottom line, analysts expect earnings per share to come in at $3.31, up from $2.12 a year ago.
TSMC's January revenue climbed 36.8% year over year to 401.3 billion New Taiwan dollars ($12.7 billion), exceeding the company's full-year growth outlook of around 30%.
Price Action: TSMC shares listed in Taipei have climbed 34% year to date, outpacing the broader market's 27% gain. TSM on NYSE is up 0.49% in after-hours trading after slipping 1.26% during the regular hours.
TSM ranks in the 97th percentile for Quality on Benzinga Edge, indicating strong performance across short, medium and long-term trends.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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