The logo of Taiwan Semiconductor Manufacturing Company (TSMC) is seen during the opening ceremony of TSMC's global R&D center in Hsinchu on July 28, 2023. (Photo: Amber Wang/AFP)
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Taiwan Chip Manufacturing Co.Samsung Electronics Co., the world's largest contract chipmaker, reported strong second-quarter revenue growth on Wednesday that easily beat market expectations, on the back of surging demand for artificial intelligence applications.
Taiwan Semiconductor Manufacturing Co., which counts Apple and Nvidia among its clients, has benefited from the boom in artificial intelligence that has helped it weather the pandemic-induced demand slump and pushed TSMC’s stock price to a record high.
Revenue in the April-June period this year was NT$673.51 billion ($20.67 billion), according to Reuters calculations, compared with LSEG's smart estimate, derived from 21 analysts, of NT$654.27 billion.
This represents a 32% year-on-year growth, compared to $15.68 billion in the corresponding period last year.
This is not a direct comparison, as TSMC only reports monthly revenue data in Taiwanese dollars, but reports quarterly revenue numbers and its forecasts on quarterly earnings calls in US dollars.
In its most recent earnings call in April, Taiwan Semiconductor Manufacturing Co. forecast second-quarter revenue in the range of $19.6 billion to $20.4 billion.
In June alone, TSMC reported revenues up 33% year-on-year to NT$207.87 billion.
The company did not provide details in its abbreviated earnings statement.
TSMC, Asia's most valuable listed company with a market cap of $830 billion, did not provide any details or future guidance in its summary earnings statement.
The company 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 post a 30% year-on-year rise in net profit in the second quarter, according to LSEG SmartEstimate.
TSMC's Taipei-listed shares, which are trading at historic highs, closed 0.5% higher on Wednesday ahead of the release of sales data, in line with the broader market.
Shares are up 76% so far this year, compared with a 34% gain for the broader market.
TSMC's American depositary receipts jumped 4.8% to a record $192.79 on Monday, briefly pushing the company's market value above $1 trillion.
