TSMC is poised to report a fourth straight quarter of record-breaking earnings, with net profits for the first quarter of 2026 expected to surge by 50% due to relentless demand for AI infrastructure. As the primary manufacturer for industry giants like Nvidia and Apple, the company’s 3-nanometer and advanced packaging technologies currently face demand that exceeds existing production capacity. This growth has propelled TSMC’s market capitalization to approximately $1.6 trillion, nearly doubling that of its rival, Samsung Electronics.
Financial analysts polled by LSEG estimate a quarterly net profit of NT$542.6 billion ($17.1 billion). Any result exceeding NT$505.7 billion would represent a new historical peak for the firm and its ninth consecutive quarter of growth. This follows a strong start to the year, with TSMC already reporting a 35% year-on-year increase in revenue for the first quarter, surpassing initial market expectations.
Looking toward the second quarter, experts anticipate further revenue growth driven by TSMC’s dominance in advanced-node technology. While the ongoing conflict in the Middle East poses risks to the supply of essential gases like helium and neon, analysts believe TSMC’s diversified sourcing and stockpiles will prevent significant disruptions. Observers are particularly focused on whether the company will adjust its 2026 capital expenditure, which currently includes a $165 billion investment in Arizona and an upgraded plan to produce 3-nanometer chips in Japan.
Reflecting this optimistic outlook, TSMC’s shares in Taipei have surged 28% so far this year, significantly outstripping the performance of the broader market. The company is scheduled to provide formal guidance for the remainder of the year during an earnings call this Thursday.
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