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

TAIPEI: 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 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.

TSMC posts record revenue in second quarter on AI demand

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, opens new tab 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.