TSMC Gains on Q2 Earnings, Revenue Beat Amid AI Chip Boom

Taiwan Semiconductor Manufacturing Company (TSM) American depositary receipts (ADRs) gained Thursday aft nan chipmaker reported second-quarter results that hit analysts' estimates amid surging request for artificial intelligence (AI) chips.

TSMC reported revenue 40% higher than nan aforesaid clip past twelvemonth astatine 673.51 cardinal New Taiwan dollars ($20.62 billion), much than analysts had expected. Profits roseate conscionable complete 36% year-over-year to NT$247.85 cardinal ($7.59 billion), exceeding estimates. On a per-share basis, TSMC earned NT$9.56 per share, aliases $1.48 per ADR, besides beating projections.

TSMC Expects Strong Q3 Demand For AI, Smartphones

TSMC said it expects income for nan 3rd 4th of betwixt $22.4 cardinal and $23.2 billion, which would beryllium maturation of astir 30% to 33% from nan $17.28 cardinal TSMC reported past year.

“Our business successful nan 2nd 4th was supported by beardown request for our industry-leading 3nm and 5nm technologies, partially offset by continued smartphone seasonality,” TSMC CFO Wendell Huang said. “Moving into 3rd 4th 2024, we expect our business to beryllium supported by beardown smartphone and AI-related demand for our leading-edge process technologies.”

TSMC ADRs were 2.4% higher astatine $171.20 arsenic of 8:45 a.m. ET Thursday pursuing nan news, a time aft TSMC and different spot stocks tumbled connected worries astir really tightening waste and acquisition restrictions and geopolitical tensions could effect nan semiconductor industry.