TSMC set to report 5% rise in first-quarter profit on strong AI chip demand

TAIPEI: Taiwan Semiconductor Manufacturing Co, the dominant producer of advanced chips used in artificial intelligence applications, is expected to report a 5% rise in first-quarter profit on Thursday thanks to strong demand. The world’s largest contract chipmaker, whose customers include Apple and Nvidia, has benefited from a surge towards AI that has helped it weather the tapering off of pandemic-led electronics demand and pushed TSMC’s stock to a record high. TSMC is set to report a net profit of T$218.1 billion ($6.74 billion) for the quarter ended March 31, according to an LSEG SmartEstimate drawn from 22 analysts. SmartEstimates give greater weighting to forecasts from analysts who are more consistently accurate. That compares to the first-quarter net profit of T$206.9 billion last year. TSMC last week reported a 16.5% rise in first-quarter revenue, beating market expectations and at the high end of the company’s own guidance.