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Analysts expect third-quarter profit of $9.33 bln

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Q3 revenue jumps, beats market expectations

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Earnings call at 0600 GMT on Thursday

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TSMC to update on outlook for current quarter, full year

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Share price soars on strong AI-related demand

TAIPEI, Oct 17 (Reuters) - Taiwan Semiconductor

Manufacturing Co ( TSM ), the dominant producer of advanced

chips used in artificial intelligence applications, is expected

to report a 42% leap in third-quarter profit on Thursday thanks

to soaring demand.

The world's largest contract chipmaker, whose customers

include Apple ( AAPL ) and Nvidia ( NVDA ), has benefited from a

surge towards AI across a spectrum of industries.

TSMC is set to report a net profit of T$300.1

billion ($9.33 billion) for the quarter ended Sept. 30,

according to an LSEG SmartEstimate drawn from 23 analysts.

SmartEstimates give greater weighting to forecasts from analysts

who are more consistently accurate.

That estimate compares to the 2023 third-quarter net profit

of T$211 billion.

TSMC last week reported a jump in Taiwan-dollar denominated

third-quarter revenue, easily beating market expectations. It

will give fourth-quarter revenue guidance in U.S. dollars.

However, on Tuesday, ASML, the world's biggest

chipmaking equipment supplier to companies including TSMC,

forecast lower than expected 2025 sales and bookings on

sustained weakness in parts of the chip market, pushing the

Dutch firm's shares to their biggest one-day drop since 1998.

On Wednesday, TSMC's shares closed down 2.3% at T$1,045,

though not far off their historic high of T$1,080 hit on July

11.

TSMC, at its quarterly earnings call starting at 0600 GMT on

Thursday, will update its outlook for the current quarter as

well as for the full year, including its capital expenditure, as

it races to expand production.

The chipmaker is spending billions of dollars building new

factories overseas, including $65 billion on three plants in the

U.S. state of Arizona, though it has said most manufacturing

will remain in Taiwan.

On its last earnings call in July, TSMC raised its full-year

revenue forecast and adjusted its capital expenditure plans for

this year to between $30 billion and $32 billion, compared with

a previous forecast of $28 billion to $32 billion.

The second half of the year is traditionally the peak season

for Taiwanese tech companies as they race to supply customers

ahead of the year-end holiday season in major Western markets.

The AI boom has helped drive up the price of shares in

Asia's most valuable company, with TSMC's Taipei-listed stock

leaping 76% so far this year, compared with a 28% gain for the

broader market.

TSMC, colloquially referred to in Taiwan as the "sacred

mountain protecting the country" for its critical role in

Taiwan's export-dependent economy, faces little competition,

though both Intel ( INTC ) and Samsung are trying to

challenge its dominance.

($1 = 32.1740 Taiwan dollars)