Major producer of advanced chips for AI applicationsTSMC(TSMC) is expected to beFirstQuarterly profit will increase by 5%.
This globalmaximumThe contract chipmaker, whose clients include Apple and Nvidia, has benefited from a surge in artificial intelligence, helping it weather weakening demand for electronics due to the pandemic and pushing TSMC shares to a record high.
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Analysts expect TSMC to post a net profit of NT$217.2 billion (US$6.71 billion) in the quarter ended March 31, according to LSEG SmartEstimate from 22 analysts.FirstQuarterly net profit was NT$206.9 billion.
TSMC reported last week thatFirstQuarterly revenue increased by 16.5%, exceeding market expectations and at the high end of the company's own guidance. Eric Yao, vice president of investment firm Eastspring Investments, said that the $6.6 billion subsidy TSMC received for its new plant in Arizona, USA, laid a good foundation for it to maintain its leading position in advanced process technology.
Analysts said they expect TSMC to raise its outlook for AI demand in the coming years.HighestThe company's shares have risen 36% this year, reaching an all-time high. TSMC will hold an earnings conference call at 6 a.m. Thursday.