TSMC, the world's largest manufacturer of advanced AI chips, is expected to report its fifth consecutive quarter of record profits, with net profit projected to surge 59% to T$632.6 billion（約100兆円） ($19.65 billion（約3.1兆円）) in the second quarter.
The Taiwanese company's strength reflects sustained demand from AI infrastructure spending, particularly for its advanced chip production and packaging technology, and underscores its critical role as a supplier to major firms like Nvidia and Apple.
What happened
TSMC is expected to report a 59% surge in net profit to T$632.6 billion（約100兆円） ($19.65 billion（約3.1兆円）) for the second quarter, and analysts say any result above T$572.5 billion（約92兆円） would mark the company's highest-ever quarterly net income and its 10th consecutive quarter of profit growth. The world's largest advanced AI chip manufacturer has benefited from strong demand for its 3-nanometre and 2-nanometre process technologies and its CoWoS advanced chip packaging technology.
Why it matters
TSMC is a key supplier to Nvidia and Apple, and its market capitalisation is now nearly double that of Samsung Electronics at around $1.97 trillion（約320兆円）, making it Asia's most valuable company. The company's continued strength signals that AI infrastructure spending remains robust, a closely watched indicator of the health of the broader AI industry.
What to watch
On Thursday, TSMC will hold an earnings call at 0600 GMT where it will provide third-quarter and updated full-year guidance. Investors are particularly focused on whether the company will raise its full-year revenue growth outlook from current guidance of "above 30%" year-on-year, and whether it will increase its capital spending outlook—viewed as a key sign of confidence in how long AI demand will last.
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TSMC's expected record profits reflect a fundamental shift in chip demand driven by AI infrastructure buildout. The company's 36% year-on-year revenue growth in the second quarter exceeded market forecasts and came amid sustained demand for its most advanced technologies—3-nanometre and 2-nanometre process nodes as well as its CoWoS packaging solution—all critical for training and deploying large AI models. As a key supplier to Nvidia, Apple, and other major technology firms, TSMC's performance serves as a barometer for the health of AI-related capital spending across the industry.
The critical question now is whether TSMC's management believes this demand surge will persist. Analysts are divided on whether the company will raise its full-year revenue growth guidance beyond the current "above 30%" outlook and whether it will increase capital spending from the $52 billion（約8.3兆円） to $56 billion（約9兆円） range announced in April. Some analysts, such as Haas Liu at Bank of America, expect TSMC could push capital spending to about $58 billion（約9.3兆円） on the back of tight equipment supply and aggressive capacity expansion by rival memory makers—a sign that chip makers across the industry are betting heavily on sustained AI demand through at least 2026.
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