Key Takeaways
- TSMC, the world's largest AI chip manufacturer, expected to report a 65% surge in third-quarter net profit.
- The company's market capitalisation is nearly double that of Samsung Electronics, standing at $2.1 trillion.
- TSMC is investing $265 billion to build chip factories in the US state of Arizona.
TSMC, the world's largest manufacturer of advanced AI chips, is set to report a sixth consecutive quarter of record earnings, driven by a booming tech sector, according to analysts.
The company is expected to report a 65% surge in third-quarter net profit to T$746.3 billion ($23.4 billion), according to an LSEG SmartEstimate compiled from 16 analysts.
TSMC's market capitalisation is almost double that of South Korean rival Samsung Electronics, currently valued at around $2.1 trillion.
On Thursday, TSMC is scheduled to provide fourth-quarter and updated full-year guidance during an earnings call at 0600 GMT.
Last Thursday, TSMC posted a 50% year-on-year rise in third-quarter revenue, hitting a new record high and beating market forecasts.
In an October 6 report, Morgan Stanley analyst Charlie Chan expects TSMC to raise its full-year revenue growth forecast to the low-to-mid 40% range from its current guidance of more than 40%, driven by strong demand for its 3-nanometre chips.
TSMC is investing $265 billion to build chip factories in the US state of Arizona, including an additional $100 billion unveiled in July.
In September, Reuters reported that TSMC was evaluating a potential investment in Texas, with Tesla CEO Elon Musk suggesting his company might build and operate the Terafab AI chip complex, with TSMC potentially subleasing a part of it.
Analysts expect TSMC to address questions about its potential expansion plans in Texas during its earnings call.
