Today’s News
Taiwan Semiconductor Manufacturing Co (TSMC), the world’s leading producer of advanced chips used in artificial intelligence (AI) applications, is expected to report a significant 42% jump in third-quarter profit, driven by a surge in demand for AI chips.
TSMC’s clients, which include tech giants Apple and Nvidia, have benefited from the growing integration of AI across various industries.
Image Source: Neowin
Analysts predict TSMC will post a net profit of TWD 300.1 billion (USD 9.33 billion) for the quarter ending September 30, up from TWD 211 billion (USD 6.56 billion) in the same period last year. These estimates are drawn from LSEG SmartEstimate, which places greater emphasis on forecasts from consistently accurate analysts.
Last week, TSMC announced a rise in third-quarter revenue, surpassing market expectations, and it is set to provide fourth-quarter revenue guidance in U.S. dollars during its earnings call. However, despite strong AI-related demand, TSMC’s stock dropped 2.3% on Wednesday, closing at TWD 1,045 (USD 32.48) —just below its all-time high of TWD 1,080 (USD 33.57) reached in July.
TSMC’s AI Demand and Expansion Plans Amid Supplier’s Forecast Downgrade
While TSMC enjoys robust demand for AI chips, its supplier, ASML, the world’s largest chipmaking equipment producer, recently forecast lower-than-expected sales for 2025 due to continued weakness in some segments of the chip market.
At TSMC’s upcoming earnings call, scheduled for Thursday, the company is expected to update its outlook for the current quarter and the full year, including capital expenditure plans. TSMC has been aggressively expanding production capacity, including USD 65 billion invested in three U.S. plants in Arizona. However, the majority of its production will continue to take place in Taiwan.
In its July earnings call, TSMC raised its full-year revenue forecast and adjusted its capital expenditure plans to between USD 30 billion and USD 32 billion, up from the previous estimate of USD 28 billion to USD 32 billion.
Image Source: The Edge Malaysia
Image Source: Reuters
As the AI boom fuels TSMC’s growth, its stock has surged 76% this year, far outpacing the 28% rise in the broader Taiwanese market. TSMC, often referred to as Taiwan’s “sacred mountain protecting the country” due to its vital role in the export-driven economy, faces limited competition despite efforts by Intel and Samsung to challenge its dominance.
(USD 1 = 32.1740 Taiwan dollars)
Other News
Dollar Rises as Asia Awaits China News
Asian shares steadied, with eyes on China’s housing policy briefing, while the dollar held near two-month highs amid rising chances of a Donald Trump presidency.
Aussie Surges on Job Data, Dollar Steady
The Australian dollar surged after strong employment data, while the U.S. dollar remained near an 11-week high, buoyed by economic strength and election outlook.
Boeing Plans USD 15 Billion Financing Amid Crises
Boeing aims to raise USD 15 billion through stock and hybrid bonds to address financial challenges from regulatory issues, production cuts, and strikes, while protecting its credit rating.
Risk Disclosure:
Securities, Futures, CFDs and other financial products involve high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding your initial investment could incur within a short period of time.
Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein.
Disclaimer:
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
The above strategies reflect only the analysts’ opinions and are for reference only. They should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution.
