TSMC third-quarter profit seen jumping 40% on strong AI chip demand

Taiwan Semiconductor Manufacturing Co. (TSMC) is projected to report a 40% increase in third-quarter profit, reaching T$298.2 billion ($9.27 billion), driven by strong demand for advanced chips used in AI applications. The company has benefited from major clients like Apple and Nvidia launching new products.

TSMC is expanding its production capacity, investing billions in new factories, including $65 billion for three plants in Arizona, while most manufacturing remains in Taiwan.

Its stock has surged 77% this year, outpacing the broader market, amid minimal competition, especially from struggling Intel.