TSMC Set to Post Record Q4 Profit as AI Chip Demand Accelerates

Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker and a critical supplier to Nvidia and Apple, is expected to deliver a record-breaking fourth-quarter profit, driven by surging global demand for artificial intelligence chips and advanced semiconductor manufacturing. Analysts forecast that TSMC will report a 28% year-on-year jump in net profit for the three months ending December 31, highlighting the company’s dominant position in the AI chip supply chain.

According to an LSEG SmartEstimate based on 19 analysts, TSMC’s quarterly net profit is projected to reach T$479.1 billion (around $15.15 billion). Any result above T$452.3 billion would mark the highest quarterly profit in the company’s history and extend its profit growth streak to eight consecutive quarters. SmartEstimates emphasize projections from analysts with a strong track record, adding credibility to the forecast.

Earlier, TSMC reported a better-than-expected 20.45% increase in fourth-quarter revenue, reinforcing confidence in its earnings momentum. The company, now valued at approximately $1.4 trillion, remains Asia’s most valuable listed firm, with a market capitalization more than double that of Samsung Electronics. Investor optimism is reflected in its share price, which surged over 44% last year and is already up about 10% this year.

Looking ahead, research firm IDC expects TSMC’s revenue growth in 2026 to accelerate to between 25% and 30% in U.S. dollar terms, supported by booming demand for AI server accelerators and strong adoption of its next-generation 2-nanometre chip technology. These advanced nodes are expected to play a major role in powering future AI infrastructure.

TSMC continues to expand its global footprint, with $165 billion committed to semiconductor manufacturing facilities in Arizona. U.S. officials have indicated that additional investments may be encouraged as trade discussions between the U.S. and Taiwan progress. While uncertainties remain around future tariffs and geopolitical factors, current U.S. tariffs exclude chips, limiting near-term impact.

With its earnings call set to provide first-quarter and full-year guidance, TSMC remains at the center of the global AI chip boom, reinforcing its status as a key driver of innovation and growth in the semiconductor industry.