--- title: "AI demand \"ignites\" performance engine, Taiwan Semiconductor is expected to break profit records for four consecutive quarters!" type: "News" locale: "en" url: "https://longbridge.com/en/news/282497699.md" description: "The world's largest advanced AI chip manufacturer, Taiwan Semiconductor, is expected to deliver record-breaking performance for the fourth consecutive quarter, benefiting from the continued growth in demand for artificial intelligence infrastructure. It is anticipated that net profit in the first quarter will soar by 50% year-on-year, reaching NT$ 542.6 billion (approximately USD 17.1 billion). Taiwan Semiconductor's market capitalization is close to USD 1.6 trillion, and its stock price has risen 28% this year. The company will announce its full performance on April 16 and hold an earnings briefing" datetime: "2026-04-13T06:52:07.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/282497699.md) - [en](https://longbridge.com/en/news/282497699.md) - [zh-HK](https://longbridge.com/zh-HK/news/282497699.md) --- # AI demand "ignites" performance engine, Taiwan Semiconductor is expected to break profit records for four consecutive quarters! According to Zhitong Finance APP, Taiwan Semiconductor (TSM.US), the world's largest advanced AI chip manufacturer, is expected to deliver record-breaking performance for the fourth consecutive quarter. Benefiting from the continued explosive demand for AI infrastructure, the company's net profit for the January-March quarter is expected to soar by 50% year-on-year. Taiwan Semiconductor is scheduled to announce its complete first-quarter results on April 16. Analysts point out that the market demand for Taiwan Semiconductor's 3-nanometer process technology used in AI chip production and its advanced packaging technology continues to exceed the company's existing capacity. This has driven the Asian company with the highest market value, a key supplier to Nvidia and Apple, to new heights. Currently, Taiwan Semiconductor's market value is approaching $1.6 trillion, about twice that of its South Korean competitor Samsung Electronics. According to LSEG SmartEstimate, which aggregates predictions from 19 analysts, Taiwan Semiconductor is expected to announce a net profit of NT$542.6 billion (approximately $17.1 billion) for the first quarter this Thursday. SmartEstimate gives higher weight to analysts with more accurate long-term forecasts. The company will hold an earnings briefing at 14:00 Beijing time on Thursday, during which it will announce its second-quarter and updated full-year performance guidance. If the final net profit exceeds NT$505.7 billion, it will set a record for the highest quarterly net profit in the company's history and achieve profit growth for the ninth consecutive quarter. So far this year, Taiwan Semiconductor's stock price has risen by 28%, outperforming the market's 22% increase during the same period. The latest quarterly revenue reported by Taiwan Semiconductor last Friday showed a 35% increase, indicating that global demand for AI chips remained stable during the initial weeks of the conflict in the Middle East. The chip manufacturer stated that its revenue for the three months ending in March reached NT$1.13 trillion (equivalent to $35.6 billion), exceeding analysts' average expectation of NT$1.12 trillion. Sales in March grew by 45%. Looking ahead, Arthur Lai, head of Asian technology research at Macquarie Capital, stated in a report to clients: "Driven by sustained strong AI demand and a leading position in advanced processes, we expect higher sequential revenue growth guidance for the second quarter of 2026." The conflict in the Middle East may pose a threat to the supply of semiconductor production materials such as helium and neon, but the market believes that Taiwan Semiconductor has the capability to manage this crisis smoothly. IDC Senior Research Manager Galen Zeng noted: "Taiwan Semiconductor's diversified procurement channels and secure inventory should be sufficient to cope with short-term disruptions." Galen Zeng also mentioned that one of the market's focal points is whether Taiwan Semiconductor will maintain or raise its capital expenditure plan for 2026, as this reflects management's confidence in long-term AI demand. Currently, Taiwan Semiconductor is investing $165 billion to build a chip factory in Arizona, USA. Additionally, the company has revised its plans in Japan to produce 3-nanometer chips locally instead of focusing on more mature processes. At the beginning of April, JP Morgan released a research report on Taiwan Semiconductor, forecasting strong gross margin growth for Q1 2026, driven by rising AI demand, leading to further increases in capital expenditure, and raised the target price to NT$2,400 The bank believes that TSMC's gross margin in the first and second quarters of 2026 will significantly exceed expectations, mainly due to the continued tight supply of 3nm capacity, high capacity utilization rates, increased demand for expedited wafers, and the depreciation of the New Taiwan Dollar. The bank expects the company's revenue in the second quarter of 2026 to grow by 6%–8% quarter-on-quarter, with the upper limit of growth mainly constrained by 3nm capacity. The bank stated that the demand for AI computing power from the company will significantly increase in the next 2–3 months, and the demand for advanced processes is unprecedentedly tight. 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