TSMC's offices in San Jose, California, U.S., on Thursday, April 18, 2024.
David Paul Morris | Bloomberg | Getty Images
Taiwan Semiconductor Manufacturing Company Microsoft Corp. on Thursday reported better-than-expected second-quarter revenue and earnings, as demand for advanced chips used in artificial intelligence applications continues to rise.
Here are TSMC's Q2 results vs. LSEG consensus estimates:
Revenue: NT$673.51 billion (US$20.82 billion), vs. NT$657.58 billion expected Net income: NT$247.85 billion, vs. NT$238.8 billion expected
Taiwan Medical Devices Co., Ltd. reported a 40.1% year-on-year rise in net revenue to NT$673.51 billion, while net income rose 36.3% year-on-year to NT$247.85 billion. The company forecast second-quarter revenue to be between $19.6 billion and $20.4 billion.
Growing demand for advanced chips used in artificial intelligence applications has boosted Taiwan-listed shares of TSMC by about 70% so far this year.
TSMC is the world's leading producer of advanced chips found in everything from smartphones to artificial intelligence applications, though rivals like Samsung and Intel Corporation They tried to challenge her dominance. apple And Nvidia Among its clients.
The chip giant currently produces 3-nanometer chips and plans to begin mass production of 2-nanometer chips in 2025. Smaller nanometers typically result in more powerful and efficient chips.
“Demand for generative AI is growing in the cloud and at the edge,” Brady Wang, associate director at Counterpoint Research, said Friday ahead of the results. “TSMC’s N3 process has good production rates and well-managed production lines. The market is well-funded, and regional political factors are driving increased demand for advanced processes.”
Wang said the capacity of the 3nm process is expected to more than double in 2024 compared to the previous year.
Analysts at Needham said on Monday they expect TSMC to raise its revenue growth target for 2024, affirming a “buy” rating and raising the price target to $210 from $168 on the U.S.-listed chip giant’s shares.
“We expect TSMC to raise its 2024 revenue growth forecast from ‘low to mid-20s’ to ‘mid to high 20s’ but maintain its 2024 (capex) target at $30 billion in its upcoming earnings call,” Needham said in a note.
According to Counterpoint Research data, TSMC captured 62% of the global alloy manufacturing market share in the first quarter, compared to 59% in the same period last year.
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