The chipmaking giant is projected to post a roughly 50% jump in net profit for the January–March period, marking what would be its fourth consecutive quarter of record results. Analysts attribute the strong performance to sustained demand for its cutting-edge 3-nanometre process technology and advanced packaging solutions, both of which remain heavily oversubscribed amid the global AI boom.
As a key supplier to technology leaders such as NVIDIA and Apple, TSMC continues to dominate the high-end semiconductor market. The company’s market capitalisation has climbed to approximately $1.6 trillion, nearly twice that of South Korea’s Samsung Electronics, underscoring its growing dominance in the global chip race.
According to an LSEG SmartEstimate compiled from 19 analysts, TSMC is expected to report a net profit of about T$542.6 billion ($17.1 billion) for the quarter. Any result above T$505.7 billion would set a new record for the company’s highest quarterly net income and extend its profit growth streak to nine consecutive quarters.
Investor attention is also focused on the company’s earnings call scheduled for 0600 GMT, where management is expected to provide updated second-quarter guidance and a revised full-year outlook. Analysts anticipate continued strong momentum, with expectations of higher sequential revenue growth driven by sustained AI-related demand and leadership in advanced chip production.
Industry experts note that demand for AI servers and data centres has significantly tightened supply across TSMC’s most advanced manufacturing nodes, particularly its 3-nanometre technology. This imbalance between demand and capacity continues to be a key driver of pricing strength and profitability.
Despite geopolitical tensions, including concerns over potential disruptions to semiconductor supply chains due to conflicts in the Middle East, analysts say TSMC remains well-positioned to manage risks through diversified sourcing and strategic inventory buffers.
Looking ahead, investors are closely watching whether the company will maintain or increase its capital expenditure plans for 2026, a move that would signal long-term confidence in the durability of AI-driven chip demand. TSMC has already committed $165 billion toward expanding its manufacturing footprint in the United States, including major facilities in Arizona, while also adjusting expansion plans in Japan to include production of advanced 3-nanometre chips.
TSMC’s shares listed in Taipei have risen about 28% year-to-date, outperforming the broader market, which is up roughly 22%, reflecting strong investor confidence in the company’s continued leadership in the global semiconductor industry.