TAIPEI (Reuters) — TSMC, the world’s largest contract chipmaker, reported strong growth in second-quarter revenue on Wednesday that handily beat market forecasts, on the back of booming demand for artificial intelligence applications.
Taiwan Semiconductor Manufacturing Co (TSM), whose customers include Apple (AAPL) and Nvidia (NVDA), has benefited from the surge towards AI that has helped it weather the tapering off of pandemic-led demand and pushed TSMC’s share price to a record high.
US-listed shares of the Taiwanese chipmaker were broadly flat in pre-market trading on Wednesday.
Revenue in the April-June period of this year came in at T$673.51 billion ($20.67 billion), according to Reuters calculations, compared with an LSEG SmartEstimate, drawn from 21 analysts, of T$654.27 billion.
That represents growth of 32% on-year, compared with $15.68 billion in the year-ago period.
It is not a direct comparison as TSMC provides monthly revenue data only in Taiwan dollars, but gives quarterly revenue figures and its outlook on its quarterly earnings calls both in U.S. dollars.
On its most recent earnings call in April, Taiwan Semiconductor Manufacturing Co forecast second quarter revenue in a range of between $19.6 billion to $20.4 billion.
For June alone, TSMC reported that revenue rose 33% year-on-year to T$207.87 billion.
The company did not provide details in its brief revenue statement.
TSMC, Asia’s most valuable publicly listed company with a market capitalisation of $830 billion, did not provide any details or forward guidance in its brief revenue statement.
It 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 report a 30% on-year rise in second-quarter net profit, according to an LSEG SmartEstimate.
TSMC’s Taipei-listed shares, trading at historic highs, closed up 0.5% on Wednesday ahead of the release of the sales data, in line with the broader market.
The shares have risen 76% so far this year, compared with a 34% gain for the broader market.
TSMC’s ADRs jumped 4.8% to a record of $192.79 on Monday, briefly boosting the firm’s market value to $1 trillion.
(Reporting by Ben Blanchard and Faith Hung; Editing by Christopher Cushing and Kim Coghill)
Source: finance.yahoo.com