Taiwan Semiconductor Manufacturing Co. is expected to report another record quarter as demand for AI chips keeps rising. Analysts tracked by LSEG forecast first-quarter net profit of T$542.6 billion, up about 50% from a year earlier. The result would extend TSMC’s run of record earnings and show how strongly AI infrastructure spending is supporting advanced chip production.
TSMC is due to report its January-to-March results on Thursday. Analysts expect net profit of T$542.6 billion, or about $17.1 billion. If the company posts more than T$505.7 billion, it would mark its highest quarterly net income on record and its ninth straight quarter of profit growth.
The earnings release follows a strong revenue update from last week. TSMC said first-quarter revenue rose 35% from a year earlier, ahead of market estimates. This performance has kept investor focus on whether the company can continue lifting output while demand for AI chips remains high.
The company’s shares listed in Taipei have gained 28% so far this year. This is above the 22% rise in the broader market. TSMC’s market value has also climbed to about $1.6 trillion, leaving it at nearly double the level of Samsung Electronics.
Analysts say demand for TSMC’s 3-nanometre chip and advanced packaging services still exceeds available capacity. The demand is being driven by data center expansion and the wider buildout of AI systems. TSMC remains a major supplier to NVIDIA and Apple, which keeps the company at the center of the current chip cycle.
Arthur Lai, head of technology research for Asia at Macquarie Capital, said, “We expect higher quarter-on-quarter revenue growth guidance for the second quarter of 2026, driven by sustained AI demand and advanced-node leadership.” Investors are also expected to watch the company’s guidance for the second quarter and full year during its earnings call.
Attention will also fall on TSMC’s spending plans. Galen Zeng, senior research manager at IDC, said one key question is whether the company keeps or raises its 2026 capital spending target. This would offer a clearer view of how management is reading long-term AI-related demand.
TSMC continues to expand its production base outside Taiwan. The company is investing $165 billion in Arizona, where it is building new chip plants. It has also adjusted its plans in Japan and is now expected to make 3-nanometre chips there instead of focusing only on older manufacturing nodes.
These moves come as supply risks remain part of the industry outlook. The conflict in the Middle East has raised concern about possible disruption to materials such as helium and neon, which are used in semiconductor production. For now, researchers say TSMC appears prepared for short-term pressure.
Zeng said, “TSMC’s diversified sourcing and safety stock should be sufficient to manage short-term disruptions.” This leaves the company entering its earnings report with two main themes in focus: strong AI-driven growth and its ability to keep expanding capacity fast enough to serve demand.
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