TSMC Q3 profit expected to soar 28% on AI spending boom

Core Insights - TSMC is expected to report a record third-quarter profit, with a 28% increase driven by high demand for AI infrastructure [1][2] - The company is forecasted to achieve a net profit of T$415.4 billion ($13.55 billion) for the quarter ending September 30 [2] - TSMC has indicated a revenue growth of 30%, marking its seventh consecutive quarter of profit growth [3] Financial Performance - The anticipated net profit of T$415.4 billion would surpass the previous record of T$398.3 billion [2][3] - Analysts predict TSMC's revenue growth for the year to be between 30% to 35% [3] Market Position - TSMC is the largest manufacturer of advanced AI chips and a key supplier to major companies like Nvidia and Apple [2][4] - The company holds a market capitalization of approximately $1.22 trillion, significantly larger than its South Korean competitor Samsung Electronics [5] Industry Trends - The ongoing growth in AI infrastructure investments is expected to benefit TSMC, as leading chip suppliers have limited alternatives [4] - Despite uncertainties from U.S. tariffs and trade disputes, investment in AI infrastructure remains a priority for cloud-service providers and manufacturers [4] Stock Performance - TSMC's shares have increased by 30% this year, reflecting optimism regarding AI, while largely ignoring tariff concerns [7] - The rise in TSMC's stock has contributed to a 16.9% increase in the benchmark Taiwanese index [7]