Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, is on track to report a remarkable 40% increase in third-quarter profits, reaching an estimated $9.27 billion. This surge is driven by the booming demand for advanced chips used in artificial intelligence (AI) applications.
TSMC's impressive performance is supported by major tech giants like Apple and Nvidia, who rely on the company's cutting-edge semiconductor technology. Compared to the previous year's third-quarter net profit of about $6.69 billion, TSMC's growth highlights the pivotal role AI is playing in the technology sector.
The company's stock has also benefited from the AI boom, with its Taipei-listed shares soaring 77% this year, significantly outpacing the broader market's 28% gain. This bullish trend is a testament to investor confidence in TSMC's strategic position in the semiconductor industry.
During its upcoming earnings call, TSMC will provide updates on its outlook for the current quarter and the full fiscal year. The company is also racing to expand production capabilities, adjusting its capital expenditure plans to between $30 billion and $32 billion.
Meanwhile, industry competitor Intel is facing challenges as it struggles to match TSMC's success in the contract manufacturing space, marking one of the company's toughest periods.
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TSMC 3rd-quarter profit to jump by 40% amid rising chip demand
cgtn.com
