TSMC's second-quarter profit seen hitting record on AI boom

TSMC, the world's largest manufacturer of advanced AI chips, is expected to notch a fifth consecutive quarter of record earnings on Thursday, with a 59% surge in net profit for April-June, driven by booming global demand for AI infrastructure.

Analysts said demand for Taiwan ‌Semiconductor Manufacturing ⁠Co's (TSMC) 3-nanometre ⁠and 2-nanometre process technologies for AI chips, as well as for its advanced ​chip packaging technology, CoWoS, remains strong.

That has catapulted Asia's most valuable company, a ​key supplier to Nvidia and Apple, to new heights. Its market capitalisation is now nearly double that of South Korean rival Samsung ​Electronics at around $1.95 trillion.


TSMC is expected to ⁠report net ‌profit of T$632.6 billion ($19.65 billion) for the second ​quarter, according ​to an LSEG SmartEstimate compiled from 18 analysts. SmartEstimates place ⁠greater weight on forecasts from analysts who are more ​consistently accurate.

An earnings call at which it will ​provide third-quarter and updated full-year guidance is scheduled for 0600 GMT.

Any result above T$572.5 billion would mark the company's highest-ever quarterly net income and its 10th consecutive quarter of profit growth.

On Monday, the company announced a 36% rise in second-quarter revenue, ahead of market forecasts and ‌a record high.

Analysts broadly expect TSMC to raise its full-year revenue growth outlook and will be watching whether ​it also ​increases capital spending, ⁠a key indicator of management's confidence in the durability of AI demand.

On its last earnings call in April, the company said 2026 capital ​expenditure would be at the high end of its earlier guidance of $52 billion to $56 billion.

TSMC is investing $165 billion to build chip factories in the U.S. state of Arizona.

TSMC's Taipei-listed shares have gained 57.4% so far this year, in line with the broader market.

($1 = 32.1880 Taiwan dollars)