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The chip giant is heading for a record profit powered by unstoppable AI infrastructure demand
TSMC is about to share some pretty amazing numbers this week. The world’s biggest chip manufacturer is expected to report a huge 27% jump in fourth-quarter profit. We’re talking about a potential record of $15.02 billion. What’s behind this massive growth? AI demand that just won’t quit.
The Taiwanese tech giant makes the super-advanced chips that power everything from your iPhone to the massive data centers running ChatGPT. Companies like Nvidia and Apple rely on TSMC to create their processors. Right now, everyone wants more of these chips than TSMC can even produce.
If the predictions are right, this will be TSMC’s eighth quarter in a row of profit growth. The company is set to release its earnings on Thursday. Analysts are feeling pretty confident this will be its best quarter ever. TSMC revealed last week that its revenue rose by over 20% in the final quarter of 2025.
What’s driving all this success? Two major factors are at play here. First up is Apple’s iPhone 17 series. These phones use TSMC’s latest 3-nanometer chips and they’re selling incredibly well. Second, the AI boom is still going strong. Every tech company out there is racing to build more powerful AI systems. They all need TSMC’s chips to make it happen.
The future looks even brighter. Analysts are now forecasting that the company’s revenue could increase by 25% to 30% in 2026. That’s higher than their earlier forecast of 22% to 26%. Why the upgrade? AI server chips are expected to grow by 78% this year compared to last year.
TSMC recently started making its next generation 2-nanometer chips. These are more powerful and use less energy than anything available today. Tech companies are already lining up to get them.
The company is putting $165 billion into building new chip factories in Arizona. That shows how confident they are about future demand. Sure, there are worries about potential tariffs and competition from companies like Samsung. But TSMC is still the clear leader in chip making.
The bottom line? AI isn’t just hype anymore. It’s creating real business growth, and TSMC is in the perfect spot to benefit from it for years to come.
