TSMC Q3 Earnings: Chipmaker expected to report jump in profits amid AI boom

World’s largest contract chipmaker Taiwan Semiconductor (NYSE:TSM), whose customers include tech giants like Apple (AAPL) and Nvidia (NVDA), is expected to announce its third quarter earnings on Thursday, October 17th. Analysts expect the chipmaker to report a jump in profits, after a soaring demand for chips used for AI products led to a strong quarter for the company.

The consensus EPS estimate is $1.79 and analysts on consensus estimate revenue to be $23.29B (+34.8% Y/Y).

SA analyst JR Research pointed out that with Samsung and Intel facing challenges, it has strengthened TSM’s status as the preferred AI foundry. “TSMC investors likely expect a blockbuster Q3 earnings release as TSM nears its all-time highs,” the analyst added.

Analyst Jonathan Weber noted that although geopolitical risks exist due to TSMC’s Taiwan-based fabs, but its dominant market position and growth prospects in AI and cloud computing remain strong.

Weber expects ongoing growth for TSM’s profits on the back of major trends such as AI, autonomous driving, and cloud computing.

Taiwan Semiconductor Manufacturing’s (TSM) stock rose about 2% premarket after its second quarter results beat estimates and third quarter revenue outlook was seen above estimates. TSM said it expects third quarter revenue to be between $22.4B and US$23.2B.

Over the last 3 months, EPS estimates have seen 4 upward revisions and 1 downward. Revenue estimates have seen 17 upward revisions and 2 downward.

TSMC (TSM) stock has gained about 80% so far this year, compared to a 22% gain in the broader S&P 500 Index.