TSMC's second-quarter profit seen hitting record on AI boom
FILE PHOTO: The logo of Taiwan Semiconductor Manufacturing Company (TSMC) is displayed outside of TSMC Museum of Innovation in Hsinchu, Taiwan April 9, 2026. REUTERS/Ann Wang/File Photo TAIPEI: TSMC, ...
Source: RSS · August 6, 2026 at 10:12 AM · AI-assisted report
KUALA LUMPUR, 6 AUGUST 2026 —
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Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest manufacturer of advanced AI chips, is expected to report a record net profit for the second quarter, driven by booming global demand for AI infrastructure. The company is forecast to post a 59% surge in net profit for the April-June period, with analysts predicting net profit of T$632.6 billion ($19.65 billion) according to an LSEG SmartEstimate compiled from 18 analysts. This would mark the company's fifth consecutive quarter of record earnings and its 10th consecutive quarter of profit growth.
Market Impact
TSMC's strong performance is attributed to the high demand for its 3-nanometre and 2-nanometre process technologies for AI chips, as well as its advanced chip packaging technology, CoWoS. The company is a key supplier to major tech firms such as Nvidia and Apple, and its market capitalization has reached around $1.95 trillion, nearly double that of its South Korean rival Samsung Electronics. On Monday, TSMC announced a 36% rise in second-quarter revenue, ahead of market forecasts and a record high. The company's Taipei-listed shares have gained 57.4% so far this year, in line with the broader market.
The demand for AI infrastructure has been driving the growth of the semiconductor industry, with TSMC at the forefront. The company has been investing heavily in new technologies and manufacturing capacity, including a $165 billion investment to build chip factories in the U.S. state of Arizona. In its last earnings call in April, TSMC said its 2026 capital expenditure would be at the high end of its earlier guidance of $52 billion to $56 billion. Analysts will be watching the company's earnings call on Thursday for updates on its full-year revenue growth outlook and capital spending plans.
In Malaysia, the impact of TSMC's strong performance is likely to be felt in the technology sector, particularly among companies involved in the manufacturing and trading of semiconductor products. The Malaysian economy has been seeking to diversify its industries and attract more high-tech investments, and the growth of the semiconductor industry could provide opportunities for local companies to participate in the global supply chain. However, details on the specific impact on the Malaysian market are not yet available.
TSMC's earnings call on Thursday will provide more insight into the company's performance and outlook. Analysts expect the company to raise its full-year revenue growth outlook, given the strong demand for AI chips and the company's investments in new technologies and manufacturing capacity. Any updates on capital spending plans will also be closely watched, as this will indicate management's confidence in the durability of AI demand. The company's guidance on third-quarter and full-year performance will be crucial in determining the direction of its shares and the broader technology sector.
The outlook for TSMC and the semiconductor industry remains positive, driven by the growing demand for AI infrastructure and the company's investments in new technologies and manufacturing capacity. However, the company faces intense competition from rivals such as Samsung Electronics, and any changes in global demand or supply chain disruptions could impact its performance. As the company continues to invest in new technologies and manufacturing capacity, it is likely to remain a key player in the global semiconductor industry, with its performance having a significant impact on the technology sector and the broader economy. Details on the company's future plans and strategies will be closely watched by investors and industry analysts.
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