TSMC third-quarter profit seen jumping 40% on strong AI chip demand Gaylord Contreras | usagoldmines.com

By Ben Blanchard and Religion Hung

TAIPEI (Reuters) – Taiwan Semiconductor Manufacturing Co, the principle producer of superior chips utilized in synthetic intelligence functions, is predicted to report a 40% leap in third-quarter revenue on Thursday because of hovering demand.

The world’s largest contract chipmaker, whose clients embody Apple and Nvidia, has benefited from the surge in direction of AI.

TSMC is ready to report a web revenue of T$298.2 billion ($9.27 billion) for the quarter ended Sept. 30, based on a LSEG SmartEstimate drawn from 22 analysts. SmartEstimates give better weighting to forecasts from analysts who’re extra constantly correct.

That estimate compares to the 2023 third-quarter web revenue of T$211 billion.

TSMC final week reported a leap in third-quarter income as reported in Taiwan {dollars}, comfortably beating market expectations. The corporate provides its income outlook in U.S. {dollars} at its earnings convention.

“Most of TSMC’s main shoppers, together with Apple, Nvidia, AMD, Qualcomm and Mediatek are launching new merchandise which closely depend on TSMC’s superior course of applied sciences,” mentioned Li Fang-kuo, chairman of President Capital Administration.

“TSMC’s Q3 earnings will exceed expectations by quite a bit,” Li added.

TSMC, at its quarterly earnings name at 0600 GMT on Thursday, will replace its outlook for the present quarter in addition to for the complete 12 months, together with its capital expenditure because it races to increase manufacturing.

TSMC is spending billions constructing new factories abroad, together with $65 billion on three crops within the U.S. state of Arizona, although it says most manufacturing will stay in Taiwan.

On its final earnings name in July, TSMC raised its full-year income forecast and adjusted its capital expenditure plans for this 12 months to between $30 billion and $32 billion, in contrast with a earlier forecast of $28 billion to $32 billion.

The AI increase has helped drive up the value of shares in Asia’s Most worthy firm, with TSMC’s Taipei-listed inventory hovering 77% to date this 12 months, in contrast with a 28% achieve for the broader market.

Hsinchu-headquartered TSMC, colloquially referred to the “sacred mountain defending the nation” for its essential function in Taiwan’s export-oriented economic system, faces little competitors.

As soon as the dominant drive within the semiconductor trade, five-decade-old Intel is going through certainly one of its worst intervals as losses mount on the contract manufacturing unit it’s constructing out in hopes of difficult TSMC.

($1 = 32.1570 Taiwan {dollars})

(Reporting by Ben Blanchard and Religion Hung; Enhancing by Christopher Cushing)