Key Points
- TSMC is expected to report a record-high third-quarter profit of 39.1%. The surging global demand for AI chips is driving the massive profit.
- This would be the company’s seventh consecutive quarter of profit growth.
- The looming threat of U.S. tariffs is a major source of uncertainty for the company.
- TSMC’s stock has soared 36% this year, fueled by the AI boom.
TSMC, the world’s most important chipmaker, posted a 39.1% jump in third-quarter net profit on Thursday, thanks to the explosive global demand for artificial intelligence. The Taiwanese giant, which makes the advanced chips for companies like Nvidia and Apple, is on track for a 28% jump in profit, though the looming threat of U.S. tariffs is casting a shadow over its future.
Analysts are forecasting a net profit of around $13.65 billion for the quarter. If that number holds, it will be TSMC’s highest profit ever and its seventh straight quarter of growth. The company has already announced that its third-quarter revenue was up an impressive 30%.
This incredible performance is a direct result of the AI boom. As companies race to build AI infrastructure, the demand for TSMC’s cutting-edge chips has gone through the roof. This has also been a huge boon for TSMC’s suppliers, like the Dutch equipment maker ASML, which recently reported a surge in new orders.
However, the good times could be complicated by the ongoing U.S.-China trade war. While Taiwan’s chips are currently exempt from U.S. tariffs, the Trump administration has been pressuring the country to move more of its production to the United States. Taiwan has rejected this demand, but the situation remains a major source of uncertainty.
For now, investors are focused on the good news. TSMC’s stock is up 36% this year, largely brushing off the tariff concerns and riding the wave of AI optimism.
