AI Demand Powers 36% Revenue Growth at TSMC
Synopsis
The chipmaker exceeded analyst expectations in the second quarter, underscoring continued strength in the global AI semiconductor market.
Taiwan Semiconductor Manufacturing Co, the world’s largest chip maker achieved record second-quarter revenue of T$1.27 trillion, which is 36% higher than the previous year because of demand for AI applications.
Revenue in the April-June period stood at T$1.267 trillion, cresting above the T$1.264 trillion LSEG SmartEstimate based on forecasts from 20 analysts. TSMC is a key provider to two of the companies being lifted by robust AI demand, Nvidia and Apple.
Last month, during its earnings call in April, the company had predicted second-quarter revenue of between $39 billion and $40.2 billion.
June Revenue Jumps Nearly 68%
In June, revenue at TSMC reached T$442.68 billion (US$14.77 billion), an increase of 67.9% year-on-year and 6.2% compared to the previous month. Typhoon Bavi shuttered financial markets in Taipei and forced a delay of the revenue announcement from last Friday.
Earnings Report Due This Week
In its revenue statement, TSMC did not offer any additional details or forward guidance. On Thursday, the company will report complete second-quarter earnings along with revisions to its forecast for this quarter and the rest of the year.
LSEG SmartEstimate also has analysts projecting a 58.8% rise in second-quarter net profit from a year earlier for TSMC. Ahead of the revenue release, TSMC’s shares listed in Taipei closed up 1% while the broader Taiwan market finished flat on Monday. So far this year, the shares have risen 57%.
Even global semiconductor capital expenditure, given Australia’s strong demand for TSMC manufactured chips, could provide ongoing national support; likely affect availability of technology hardware and in-turn impact the cost structures of AI infrastructure for firms dependent on next generation chips.
Sources: Reuters
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