Chipmaking Giant TSMC Set to Smash Revenue Expectations
As the world waits with bated breath, Taiwan Semiconductor Manufacturing Company (TSMC) is poised to blow past revenue expectations when it announces its third-quarter earnings this Thursday. Analysts predict a staggering $23.3 billion in revenue, a significant jump from the company’s guidance of $22.4 billion to $23.2 billion.
A Stellar Year So Far
Despite a 2.63% dip in its shares at Tuesday’s market close, TSMC’s stock has seen an impressive 84.3% surge this year alone. The chipmaker’s net revenue for September reached $7.82 billion, a 0.4% increase from the previous month and a whopping 40% year-over-year jump. The company’s revenue for January through September grew a remarkable 31.9% from the previous year.
AI Boom Drives Sales
TSMC’s success can be attributed to the explosive growth of generative artificial intelligence, which has seen its sales skyrocket. The company counts tech giants Nvidia and Apple among its esteemed customers. In July, TSMC exceeded analysts’ expectations for the second quarter, reporting a 40% year-over-year revenue increase to $20.82 billion.
Confident Outlook
Wendell Huang, TSMC’s chief financial officer, expressed optimism about the company’s prospects, citing smartphone- and AI-related demand as key drivers of business in the third quarter. CEO C.C. Wei is equally bullish, predicting that chip production will finally catch up to demand by 2025 or 2026.
August Revenue Soars
In August, TSMC reported revenue of NT$250.87 billion ($7.8 billion), a 33% increase from the previous year. While its August sales were down 2.4% from July’s 45% year-over-year surge, the company remains confident about its future prospects.
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