TSMC posts record profit for a sixth straight quarter, beating estimates on AI boom
TSMC reported record third-quarter profits, exceeding analyst estimates due to high demand for AI-related semiconductors. The company plans to significantly increase capital expenditure through 2028 to expand production capacity.
Why it matters
As the world's largest contract chipmaker, TSMC's performance is a key indicator of the health and trajectory of the global AI hardware industry.
Taiwan Semiconductor Manufacturing Co . on Thursday reported a record third-quarter profit that beat estimates, powered by an unrelenting global appetite for AI chips.
Here are TSMC's third-quarter results against LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate:
The world's largest contract chipmaker posted a record net profit for a sixth straight quarter, reporting 68.7% surge in the reported quarter from a year earlier.
TSMC's third-quarter operating margin came in at 58.7%, exceeding the upper end of its guidance range of 58%, showcasing the pricing power enjoyed by the company as the AI boom fuels demand for semiconductors.
TSMC forecast fourth-quarter revenue between $52.3 billion and $54.3 billion, representing a 14% sequential increase and a 58% jump from a year earlier at the midpoint of its guidance range, according to the company's earnings call.
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