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AI demand: still hungrier than the fabs
TSMC is heading into its Thursday earnings call with a very familiar problem: too much demand, not enough capacity. Analysts think the company’s 3-nanometer technology and advanced packaging business are still getting gobbled up by AI chipmakers faster than TSMC can crank them out.
The part investors are watching
This isn’t just about bragging rights on another record profit quarter. The bigger tell is whether TSMC can keep turning the AI frenzy into actual revenue without tripping over the same old bottlenecks. If the company keeps saying demand is outpacing supply, that’s great for pricing power — and a little annoying if you’re a customer waiting in line.
What’s likely to matter on the call
- A fourth straight quarter of record profit would reinforce that the AI buildout is still in overdrive.
- TSMC is also set to give first-quarter and full-year guidance, which is where you’ll hear how confident management feels about the rest of 2026.
- Any update on advanced packaging capacity will matter, because that’s the secret sauce behind a lot of the hottest AI chips.
Big picture: TSMC is basically the toll booth on the AI highway. If traffic keeps getting heavier, investors usually don’t mind paying the toll.