TSMC's Q2 Revenue Surges on AI Boost, Exceeds Market Expectations
- tech360.tv
- Jul 11, 2024
- 2 min read
TSMC's Q2 revenue of T$673.51 billion (US$20.67 billion) exceeded market expectations. The company's growth is attributed to the booming demand for AI applications. TSMC's shares have surged by 76% this year, outperforming the broader market.
The company's strong performance can be attributed to the increasing demand for artificial intelligence (AI) applications.
With customers like Apple and Nvidia, TSMC has successfully capitalised on the AI boom, which has helped it navigate the decline in pandemic-related demand. As a result, TSMC's share price has reached record highs.
In the April-June period of this year, TSMC recorded revenue of T$673.51 billion (US$20.67 billion), according to Reuters calculations. This sum substantially outperformed the LSEG SmartEstimate of T$654.27 billion, which was based on 21 analysts' projections. The year-on-year growth rate is an outstanding 32%, compared to US$15.68 billion during the same period last year.
It's worth noting that TSMC publishes monthly revenue data in Taiwanese dollars but reports quarterly revenue and outlook in US dollars. During its most recent earnings call in April, the company forecasted second-quarter revenue of US$19.6 billion to $20.4 billion.
In June alone, TSMC recorded a 33% year-on-year rise in revenue, totaling T$207.87 billion. However, the corporation did not disclose any additional information in its brief revenue statement.
TSMC, Asia's most valuable publicly traded firm with a market capitalization of US$830 billion, is set to report second-quarter earnings on July 18. This release is likely to include an update on the company's outlook and plans for the current quarter and the rest of the year.
According to the LSEG SmartEstimate, analysts expect TSMC's second-quarter net profit to increase by 30% year on year. The company's Taipei-listed shares rose 0.5% on Wednesday ahead of the announcement of sales figures, in line with the broader market. TSMC's stock has already risen by 76% this year, surpassing the wider market's 34% increase.
TSMC's American Depositary Receipts (ADRs) rose 4.8% to a new high of US$192.79 on Monday, briefly raising the company's market worth above US$1 trillion.
TSMC's Q2 revenue of T$673.51 billion ($20.67 billion) exceeded market expectations.
The company's growth is attributed to the booming demand for AI applications.
TSMC's shares have surged by 76% this year, outperforming the broader market.
Source: REUTERS
