TSMC Set to Report 5% Profit Increase Amid Surging AI Demand and Expansion Plans

TSMC Set to Report 5% Profit Increase Amid Surging AI Demand and Expansion Plans

Taiwan Semiconductor Manufacturing Co, the leading producer of advanced chips for artificial intelligence applications, is projected to announce a 5% increase in first-quarter profit this Thursday due to robust demand.

TSMC Set to Report 5% Profit Increase Amid Surging AI Demand and Expansion Plans

As the largest contract chipmaker globally, serving key clients like Apple and Nvidia, TSMC has capitalized on the accelerating shift towards AI technology. This shift has helped counterbalance the diminishing demand for pandemic-driven electronics, propelling TSMC’s stock to unprecedented levels.

Analysts anticipate TSMC will declare a net profit of T$218.1 billion ($6.74 billion) for the quarter ending March 31, based on LSEG SmartEstimate which prioritizes predictions from historically accurate analysts. This is an increase from last year’s first-quarter net profit of T$206.9 billion.

Just last week, TSMC reported a 16.5% rise in first-quarter revenue, surpassing market expectations and aligning with the upper end of its own forecast.

The company is scheduled to share further guidance for the upcoming quarter and full year during an earnings call at 0600 GMT on Thursday. Discussions may also include updates on TSMC’s expansion in Arizona, where it plans to construct a third factory supported by $6.6 billion in U.S. subsidies.

Despite challenges from competitors such as Intel and Samsung, TSMC maintains its lead in advanced chip manufacturing, crucial for a range of technologies from consumer electronics to defense systems. However, Intel recently reported increasing losses in its foundry business, highlighting the struggles it faces in reclaiming its former technological edge over TSMC.

The surge in AI has notably increased TSMC’s share value, making it Asia’s most valuable company. Its stock on the Taipei exchange has risen over 30% this year, reaching a record high and significantly outperforming the broader market’s 12% gain.

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Pooja Chauhan

Pooja Chauhan: Your Source for Entertainment and Box Office News Pooja Chauhan is a passionate writer and dedicated journalist specializing in delivering the latest updates and insights from the world of entertainment and box office. With a keen eye for detail and a deep love for cinema, Pooja brings her readers accurate and engaging coverage of all things related to movies, celebrities, and the dynamic world of showbiz. Her commitment to keeping her audience well-informed and entertained makes her a valuable voice in the realm of entertainment journalism. When she's not busy uncovering the latest scoops, Pooja enjoys exploring classic films and indulging in creative writing." Contact us: admin@bollywoodfever.co.in

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