Source: Zhitong Finance
According to LSEG SmartTest's survey of 22 analysts,$Taiwan Semiconductor (TSM.US)$It is expected to achieve net profit of NT$217.2 billion (US$6.71 billion) in the quarter ending March 31, an increase of 5% over the previous year. In contrast, net profit for the first quarter of last year was NT$206.9 billion.
Due to strong demand, TSMC announced a 16.5% year-on-year increase in first-quarter revenue last week, exceeding market expectations, and at the high end of the company's own guidance.
TSMC is the world's largest chip maker, and its customers include Apple and Nvidia. The company benefited from a surge in demand for artificial intelligence, which helped it survive a period of declining demand for electronics products due to the pandemic and pushed TSMC's stock price to record highs.
Eric Yao, vice president of Eastspring Investments, said that the US provided $6.6 billion in subsidies for TSMC's new Arizona plant, which indicates good prospects for TSMC to maintain its leading position in advanced process technology. The company manages approximately NT$90 billion worth of Taiwanese stock client assets.
“TSMC is likely to continue leading the way in this regard, Intel will break new ground, and Samsung won't have much chance of catching up,” he said. He was referring to two rivals that wanted to challenge TSMC's dominance.
Intel revealed this month that operating losses in its foundry business are increasing, which is a blow to Intel. The company is trying to reclaim the technological leadership it lost to TSMC in recent years. TSMC also announced last week that it will establish a third fab in Arizona.
Analysts at Fubon Securities said they expect TSMC to raise their expectations for AI demand in the next few years. “TSMC has previously said that artificial intelligence may account for ten times its revenue by 2026, but based on our calculations, we think this goal may be achieved early in 2025.”
The boom in artificial intelligence has helped drive TSMC's stock price higher. Since this year, TSMC's Taipei-listed shares have risen 36%, a record high, while the general market rose 14%.
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