TSMC (TSM), the world’s largest manufacturer of advanced artificial intelligence chips, is expected to post a 28% jump in third-quarter profit to a record due to the insatiable demand for AI infrastructure, though U.S. tariffs could impact its outlook.
TSMC’s stock rose almost 5% before the bell on Monday.
Taiwan Semiconductor Manufacturing Co, the world’s No. 1 contract chipmaker and a key supplier to Nvidia (NVDA) and Apple (AAPL), is forecast to report a net profit of T$415.4 billion ($13.55 billion) for the three months through September 30, according to an LSEG SmartEstimate compiled from 20 analysts.
SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate.
TSMC has already flagged a market-forecast-beating rise in third-quarter revenue of 30%. Any profit result above T$398.3 billion would mark the company’s highest-ever quarterly net income and its seventh consecutive quarter of profit growth.
Mario Morales, group vice president at research firm IDC, said he expects TSMC’s revenue to grow at least 30% to 35% this year.
“I am expecting that TSMC will continue to outperform its peers given the ongoing exponential growth of AI infrastructure investments and that the leading chip suppliers such as Nvidia and AMD have only one place to go – TSMC,” he said.
Taiwan has rejected that idea, and TSMC is already investing $165 billion building factories in the U.S. in the state of Arizona.
Shares in TSMC have gained 30% so far this year on optimism over AI, largely brushing off tariff concerns. The heavyweight’s rise has powered the benchmark Taiwanese index’s 16.9% advance over the same period.
