TSMC places of work in San Jose, California, US, on Thursday, April 18, 2024.
David Paul Morris | Bloomberg | Getty Photographs
Taiwan Semiconductor Manufacturing Firm on Thursday beat income and revenue expectations within the second quarter, as demand for superior chips utilized in AI functions proceed to surge.
Listed here are TSMC’s second-quarter outcomes versus LSEG consensus estimates:
- Income: 673.51 billion New Taiwan {dollars} ($20.82 billion), vs. NT$657.58 billion anticipated
- Web earnings: NT$247.85 billion, vs. NT$238.8 billion anticipated
TSMC reported internet income rose 40.1% from a yr in the past to NT$673.51 billion, whereas internet earnings elevated 36.3% from a yr in the past to NT$247.85 billion. The agency guided second-quarter income to be between $19.6 billion and $20.4 billion.
Surging demand for superior chips utilized in AI functions has boosted TSMC’s Taiwan-listed shares by practically 70% up to now this yr.
TSMC is the world’s primary producer of superior chips present in every part from smartphones to AI functions, although rivals corresponding to Samsung and Intel have been attempting to problem its dominance. It counts Apple and Nvidia amongst its clientele.
The chip big at the moment produces 3-nanometer chips and plans to begin mass manufacturing of 2-nanometer chips in 2025. Sometimes, a smaller nanometer dimension yields extra highly effective and environment friendly chips.
“The demand for generative AI is surging within the cloud and on the edge. TSMC’s N3 course of boasts good yield charges and well-managed manufacturing traces. The market is well-funded, and regional political components drive elevated demand for superior processes,” Brady Wang, affiliate director of Counterpoint Analysis, mentioned on Friday forward of the outcomes.
Wang mentioned the capability of the 3-nanometer course of is predicted to greater than double in 2024 in comparison with the earlier yr.
Needham analysts on Monday mentioned they anticipate TSMC to lift its 2024 income development goal, reiterating a “purchase” ranking and elevating the worth goal to $210 from $168 on the chip big’s U.S.-listed shares.
“We anticipate TSMC to lift its 2024 income development outlook from ‘low- to mid-20s’ to ‘mid- to high-20s’ however keep its 2024 [capital expenditures] goal at $30 billion on the upcoming earnings name,” Needham mentioned in a be aware.
TSMC held 62% of world foundry market share within the first quarter, up from 59% in the identical interval a yr in the past, in line with Counterpoint Analysis knowledge.
That is breaking information. Please examine again for updates.
