The Taiwan Semiconductor Manufacturing Co. (TSMC) is expected to announce an increase in profits as the company rises amid the AI boom.
Sources indicate that TSMC is expected to announce a 5% increase in terms of the company's Quarter 1 profits, just a few days after it also recorded first-quarter sales growth of 16.5%, above both market estimates and the company's projections.
With clients like Apple and NVIDIA, TSMC, the largest contract chipmaker in the world, has profited from a wave of AI innovation that has propelled its stock to all-time highs and helped it weather the slowdown in pandemic-related electronics demand.
(Photo: Annabelle Chih/Getty Images) HSINCHU, TAIWAN - SEPTEMBER 16: Taiwan Semiconductor Manufacturing Company, Limited (TSMC), the world's most valuable semiconductor company, at Hsinchu Science Park on September 16, 2022, in Hsinchu, Taiwan.
An LSEG SmartEstimate derived from 22 analysts projects TSMC will record a net profit of T$217.2 billion, or $6.71 billion, for the quarter that concluded on March 31.
SmartEstimates give more weight to forecasts from analysts with higher consistency of accuracy. In contrast, the net profit for the first quarter of last year was T$206.9 billion.
Vice President Eric Yao of Taiwan's Eastspring Investments, which oversees approximately T$90 billion in client assets in Taiwanese stocks, said that TSMC's prospects of sustaining its dominance in advanced process technologies were brightened by the $6.6 billion in U.S. subsidies for its new Arizona factories.
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TSMC Board Shake-Up
Candidates for the company's new board of directors were also recently announced by TSMC. These candidates included three current directors, Drs. C.C. Wei, F.C. Tseng, and Ming-Hsin Kung; four current independent directors, Sir Peter Leahy Bonfield, Mr. Michael R. Splinter, Mr. Moshe N. Gavrielov, and Dr. L. Rafael Reif; and three new candidates, Ms. Ursula M. Burns, Ms. Lynn L. Elsenhans, and Dr. Chuan Lin.
These 10 candidates for the Board of Directors will be elected on June 4, 2024, during TSMC's Annual General Meeting.
The new leadership restructuring comes alongside the retirement of the company's chairman, Dr. Mark Liu, and board members, Mr. Yancey Hai and Ms. Kok-Choo Chen.
TSMC's Climb Coincides with NVIDIA
TSMC's profit surge comes as its prominent client NVIDIA recently surpassed Saudi Aramco to become the third most valuable company globally and in the United States.
Marking its debut above the $2 trillion threshold, NVIDIA reached a market capitalization of $2.06 trillion. Meanwhile, Saudi Aramco experienced a decline, settling at $2.03 trillion.
NVIDIA, one of just four firms globally to reach this milestone, joins an exclusive club with a market worth over $2 trillion.
Although Microsoft is the only company to have exceeded the $3 trillion threshold, NVIDIA's explosive growth can be attributed to its leadership in the high-end AI processor market, which holds an 80 percent market share.
NVIDIA's stock price spike highlights the company's unmatched position in the AI chip industry. This is due to the increasing demand for its state-of-the-art processors, which power data centers and are essential for handling difficult tasks in AI applications.
Related Article: TSMC's Arizona Expansion Secures Record $6.6B Boost from US Government
(Photo: Tech Times)
