Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

TSMC Q2 revenue jumps on AI boost, handily beats market forecasts

Published 10/07/2024, 04:01 pm
Updated 10/07/2024, 04:22 pm
© Reuters. FILE PHOTO: A smartphone with a displayed TSMC (Taiwan Semiconductor Manufacturing Company)  logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
TSM
-

By Ben Blanchard and Faith Hung

TAIPEI (Reuters) -TSMC, the world's largest contract chipmaker, reported strong growth in second-quarter revenue on Wednesday that handily beat market forecasts, on the back of booming demand for artificial intelligence (AI) applications.

Taiwan Semiconductor Manufacturing Co, whose customers include Apple (NASDAQ:AAPL) and Nvidia, has benefited from the surge towards AI that has helped it weather the tapering off of pandemic-led demand and pushed TSMC's share price to a record high.

Revenue in the April-June period of this year came in at T$673.51 billion ($20.67 billion), according to Reuters calculations, compared with an LSEG SmartEstimate, drawn from 21 analysts, of T$654.27 billion.

That represents growth of 32% on-year, compared with $15.68 billion in the year-ago period.

It is not a direct comparison as TSMC provides monthly revenue data only in Taiwan dollars, but gives quarterly revenue figures and its outlook on its quarterly earnings calls both in U.S. dollars.

On its most recent earnings call in April, Taiwan Semiconductor Manufacturing Co forecast second quarter revenue in a range of between $19.6 billion to $20.4 billion.

For June alone, TSMC reported that revenue rose 33% year-on-year to T$207.87 billion.

The company did not provide details in its brief revenue statement.

TSMC, Asia's most valuable publicly listed company with a market capitalisation of $830 billion, did not provide any details or forward guidance in its brief revenue statement.

It is scheduled to report second-quarter earnings on July 18, when it will also update its outlook and plans for the current quarter and the rest of the year.

TSMC is expected to report a 30% on-year rise in second-quarter net profit, according to an LSEG SmartEstimate.

TSMC's Taipei-listed shares, trading at historic highs, closed up 0.5% on Wednesday ahead of the release of the sales data, in line with the broader market.

The shares have risen 76% so far this year, compared with a 34% gain for the broader market.

© Reuters. FILE PHOTO: A smartphone with a displayed TSMC (Taiwan Semiconductor Manufacturing Company)  logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

TSMC's ADRs jumped 4.8% to a record of $192.79 on Monday, briefly boosting the firm's market value to $1 trillion.

($1 = 32.5790 Taiwan dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.