TSMC Fourth-Quarter Profit Seen Jumping 58% On Strong AI Chip Demand

Taiwan Semiconductor Manufacturing Company (TSMC), the main global producer of advanced chips used in artificial intelligence applications, is expected to report a 58% leap in fourth-quarter profit on Thursday because of surging demand.The world's largest contract chipmaker, whose customers include Apple and Nvidia, has benefited from the megatrend towards AI. But the Taiwanese company faces headwinds from U.S. government technology restrictions on China and uncertainty about President-elect Donald Trump's incoming administration, which has threatened broad import tariffs.TSMC is set to report a net profit of T$377.95 billion ($11.41 billion) for the quarter ended Dec. 31, according to a LSEG SmartEstimate drawn from 22 analysts. SmartEstimates give greater weighting to forecasts from analysts who are more consistently accurate.That estimate compares to the 2023 fourth-quarter net profit of T$238.7 billion.TSMC last week reported a jump in fourth-quarter revenue in Taiwan dollars, comfortably beating market expectations. The company gives its revenue outlook in U.S. dollars on its quarterly earnings call, scheduled for 0600 GMT on Thursday. Get full access to Neural News Network at remunerationlabs.substack.com/subscribe