TSMC posts another record quarter as AI demand holds steady

For the eighth 4th successful a row, Taiwan Semiconductor Manufacturing Company (TSMC) is reporting year-over-year growth, arsenic profits successful the 4th fourth were up 35% amid continuing request for artificial quality chips.

The world's largest declaration chipmaker reported nett income of $505.74 cardinal Taiwan dollars ($16 cardinal successful U.S. dollars), versus expectations of $478.37. Revenues bushed expectations arsenic well, coming successful astatine astir $33.73 cardinal USD.

To support up with the near-insatiable demand, TSMC says it plans to walk up to $56 cardinal this twelvemonth connected further factories extracurricular of Taiwan and successful the U.S. Company absorption indicated it saw nary near-term extremity to the bully times, forecasting Q1 maturation of 6.3% 4th implicit quarter. Demand remains beardown for the company's 3nm and 5nm technologies, TSMC said. Year implicit year, 2026 income are expected to summation 30% successful USD.

CEO C.C. Wei, connected an net call, said the determination to boost spending was made aft check-ins with large customers (which see Nvidia and AMD) and assessing existent and projected aboriginal request for AI chips.

“If we didn’t bash it carefully…that would beryllium a large catastrophe to TSMC,” helium said.

Analysts cheered the results, saying TSMC remains successful a ascendant position, which should fto it proceed to capitalize connected the AI boom.

"With TSMC firing connected each cylinders, immoderate competitory hazard seemingly inactive years distant (arguably the extremity of this decennary astatine the earliest), and with the banal trading astatine a 30% discount to our PT (which could beryllium construed arsenic overly conservative) … the institution remains 1 of our favourite names successful hardware," wrote Wedbush successful a enactment to investors.

TSMC, past March, struck a woody to put a reported $100 cardinal successful U.S. spot plants and packaging facilities. Months aboriginal the institution saw its marketplace headdress apical $1 trillion.

The institution already has 1 mill successful Arizona and is reportedly readying to physique respective caller ones successful that authorities arsenic good to lessen the interaction of tariffs.