TSMC offices in San Jose, California, USA, Thursday, April 18, 2024.
David Paul Morris | Bloomberg | Getty Images
Taiwan Semiconductor Manufacturing Company The company on Thursday reported better-than-expected second-quarter sales and profit as demand for advanced chips used in AI applications continued to surge.
Here’s how TSMC’s second-quarter results compare to LSEG’s consensus estimates:
- Revenue: NT$673.51 billion (US$20.82 billion), compared with forecast of NT$657.58 billion
- Net income: NT$247.85 billion compared to the forecast of NT$238.8 billion
TSMC announced that its net revenue increased 40.1% year over year to NT$673.51 billion, and its net profit increased 36.3% year over year to NT$247.85 billion. The company expects second-quarter revenue to be in the range of $19.6 billion to $20.4 billion.
TSMC’s Taiwan-listed shares have risen about 70% so far this year as demand for advanced chips used in AI applications has soared.
TSMC is the world’s largest manufacturer of advanced chips used in everything from smartphones to AI applications, but it also owns Samsung and Intel have attempted to challenge that dominance. apple and NVIDIA Among customers.
The semiconductor giant currently produces 3-nanometer chips and plans to begin mass production of 2-nanometer chips in 2025. Smaller nanometer sizes typically result in more powerful and efficient chips.
“Demand for generative AI in the cloud and at the edge is surging. TSMC’s N3 process boasts good yields and a well-managed production line. The market is well-capitalized and regional political factors are driving increased demand for advanced processes,” Brady Wang, associate director at Counterpoint Research, said on Friday ahead of the earnings release.
Wang said production capacity for the 3-nanometer process is expected to more than double in 2024 from the previous year.
Analysts at Needham on Monday predicted TSMC would raise its 2024 revenue growth target, reiterating their “buy” rating on the U.S.-listed semiconductor giant and raising their price target to $210 from $168.
“TSMC is raising its 2024 revenue growth outlook from ‘low to mid 20s percent’ to ‘mid to high 20s percent’, but expects sales growth to remain steady in 2024. [capital expenditures] “We will set a target of $30 billion at our next earnings call,” Needham said in the note.
TSMC held 62% of the global foundry market share in the first quarter, up from 59% in the same period last year, according to data from Counterpoint Research.
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