TAIPEI — The world’s largest producer of advanced artificial intelligence chips is poised to hit another financial milestone, with analysts widely expecting Taiwan Semiconductor Manufacturing Co. — better known as TSMC — to post record profits for the fifth quarter in a row.
The surge is being fueled by explosive growth in AI infrastructure spending, which has kept demand for TSMC’s most advanced chip manufacturing processes at an all-time high. The company’s 3-nanometre and 2-nanometre chip technologies, along with its advanced chip packaging method known as CoWoS, continue to see strong orders from major clients.
TSMC serves as a critical supplier to companies including Nvidia and Apple, and has grown into Asia’s most valuable company. Its market capitalization now stands at roughly $1.97 trillion — nearly double that of South Korean competitor Samsung Electronics.
For the second quarter, analysts project TSMC will report a 59% jump in net profit, reaching approximately T$632.6 billion — equivalent to about $19.65 billion — based on an LSEG SmartEstimate drawn from 18 analysts. SmartEstimates give more weight to forecasts from analysts with a stronger track record of accuracy.
Any quarterly net income figure topping T$572.5 billion would represent the company’s highest-ever single-quarter result and would extend its streak of consecutive quarters with profit growth to ten.
Earlier this week, TSMC reported a 36% year-over-year increase in second-quarter revenue, surpassing market expectations and setting a new all-time record.
Dan Nystedt, a research analyst at TriOrient, an Asia-based private investment firm, noted the strength of the results. “TSMC’s strong second-quarter revenue shows AI demand remains healthy, driving demand for its advanced chip production and CoWoS packaging,” he said.
Most analysts expect TSMC to raise its full-year revenue growth forecast. Haas Liu, Bank of America’s Asia semiconductor analyst, wrote in a research note that supply chain checks point to a continued strong AI demand pipeline, and suggested TSMC could lift its full-year outlook beyond its current guidance of “above 30%” year-over-year growth.
Investors are also closely watching whether TSMC will increase its capital spending projections, which many view as a signal of how confident company leadership is in the long-term strength of AI demand.
During its most recent earnings call in April, TSMC indicated that its 2026 capital expenditures would land at the high end of a previously stated range of $52 billion to $56 billion. While Nystedt expects that guidance to hold, Liu believes TSMC could push capital spending to around $58 billion, citing tight equipment availability and aggressive capacity expansion by memory chip makers including Samsung Electronics, Micron Technology, and SK Hynix.
Separately, TSMC has committed $165 billion to construct chip manufacturing facilities in the U.S. state of Arizona.
Shares of TSMC listed on the Taipei stock exchange have climbed 56% so far this year, edging slightly ahead of the broader market’s 54% gain.
