TSMC, the world’s largest contract chipmaker, reported robust second-quarter revenue growth on Wednesday, significantly surpassing market expectations due to soaring demand for artificial intelligence applications.
Taiwan Semiconductor Manufacturing Co (TSMC), which counts Apple (AAPL) and Nvidia (NVDA) among its clients, has thrived on the AI boom. This surge has helped TSMC mitigate the decline in pandemic-driven demand and propelled its share price to a record high.
In pre-market trading on Wednesday, US-listed shares of TSMC remained broadly flat. For the April-June period, revenue reached T$673.51 billion ($20.67 billion), based on Reuters calculations. This figure exceeded the LSEG SmartEstimate from 21 analysts, which predicted T$654.27 billion. This represents a 32% year-on-year growth compared to $15.68 billion in the same period last year.
While TSMC reports monthly revenue data in Taiwan dollars, it provides quarterly revenue figures and outlook in U.S. dollars during its earnings calls. In its most recent earnings call in April, TSMC forecasted second-quarter revenue between $19.6 billion and $20.4 billion.
For June alone, TSMC reported a 33% year-on-year revenue increase, reaching T$207.87 billion. The company did not provide detailed information in its brief revenue statement.
As Asia’s most valuable publicly listed company, with a market capitalization of $830 billion, TSMC did not include any forward guidance in its revenue statement. The company is scheduled to report second-quarter earnings on July 18, where it will also update its outlook and plans for the current quarter and the remainder of the year.
TSMC is expected to report a 30% year-on-year increase in second-quarter net profit, according to an LSEG SmartEstimate. TSMC’s Taipei-listed shares, which are trading at historic highs, closed up 0.5% on Wednesday ahead of the sales data release, aligning with the broader market. So far this year, TSMC shares have risen 76%, compared to a 34% gain for the broader market.
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