TSMC's August Sales Surge 33% Amid Strong AI Chip Demand

TSMC's sales are surging on high AI chip demand

Taiwan Semiconductor Manufacturing Company (TSM) makes a majority of the world's advanced chips -- and its sales are reflecting continued demand for artificial intelligence. The Taiwanese chipmaker reported revenue of NT$250.87 billion ($7.8 billion) for August -- a 33% increase from the previous year. The company's August sales were down 2.4% from July, which saw a 45% surge year over year. TSMC's revenue for January through August was NT$1,773.97 billion ($55.13 billion), almost 31% higher than a year ago. Analysts expect TSMC's third-quarter revenue to grow around 37% from the previous year, according to estimates compiled by FactSet (FDS). The company is expected to report its third-quarter earnings results on Oct. 17. In July, TSMC beat analysts' expectations for the second quarter, reporting revenue of $20.82 billion for fiscal year 2024 -- up 40% from a year ago. The Taiwanese chipmaker, which has an exclusive partnership with AI chip designer Nvidia (NVDA) and is the only supplier of chips for Apple's (AAPL) iPhones, has seen its shares rise around 56% so far this year. The chipmaker's second-quarter business "was supported by strong demand for our industry-leading 3nm and 5nm technologies," Wendell Huang, chief financial officer of TSMC, said in a statement. In the third quarter, Huang said TSMC expects smartphone and AI-related demand to drive business. TSMC chief executive C.C. Wei said on a call with analysts that AI is "so hot" right now, and that all of its customers are integrating AI into products and devices. Wei said he expects chip production to catch up to demand by 2025 or 2026. The company expects third-quarter revenue to be between $22.4 billion and 23.2 billion. Analysts are expecting $23.3 billion, according to FactSet. Meanwhile, the Taiwanese chipmaker's trial production yields at its factory in Phoenix, Ariz. are reportedly similar to comparable facilities in Taiwan. TSMC's yield rate, or the amount of functional chips it can produce per manufacturing process, at its first factory in Phoenix is similar to those back home, Bloomberg reported, citing an unnamed person familiar with the matter. It's a positive sign for the Taiwan-based chipmaker, which has faced delays at two of its planned facilities in Arizona due to a shortage of skilled workers, and amid investors' expectations for U.S. profitability.

Taiwan Semiconductor's August sales surge as AI demand continues (TSM)

Taiwan Semiconductor (NYSE:TSM) said on Tuesday that sales for August surged year-over-year, buoyed in part by demand for all things artificial intelligence. Taiwan Semi, which manufactures processors for Nvidia (NVDA), Apple (AAPL), AMD (AMD) and others, said revenue for August came in at approximately $7.8B, or NT$250.87B, up 33% from August 2023, albeit down 2.4% from July. Revenue for the eight months ended in July jumped 30.8% to approximately $55.16B, or NT$1,773.97B. Shares fell 1.2% in premarket trading. More on Taiwan Semiconductor Taiwan Semiconductor: Chip Giant Is Still A Buy Despite Short-Term Risks Taiwan Semiconductor: Still Buy On AI TSMC's Secret Weapon In AI Taiwan exports notch new record on AI boom, recovery in shipments to China Intel should exit foundry business, Citi says

TSMC's August Revenue Climbs 33% as AI Chip Demand Holds Up

Taiwan Semiconductor Manufacturing Co.'s revenue rose 33% last month, in a positive signal to investors betting on a smartphone market recovery and sustained demand for Nvidia Corp.'s AI chips. Sales reached NT$250.9 billion ($7.8 billion) in August, slowing from the previous month's 45% growth pace. For the third quarter, analysts expect TSMC's revenue to grow 37%, extending a recovery from the post-Covid depths of 2023.

Taiwan Semiconductor's Strong August Sales Hint at Big Gains Ahead, AI and iPhone Demand Fuel Optimism - Taiwan Semiconductor (NYSE:TSM)

Analysts expect TSM's Q3 revenue to grow 37%, driven by strong AI demand and optimism for smartphone market recovery. Taiwan Semiconductor Manufacturing Co's TSM topline growth was 33% in August 2024. The contract chipmaker's sales reached NT$250.9 billion ($7.8 billion) in August 2024, implying a 2.4% sequential decline. The year-on-year growth signaled optimism over smartphone market recovery and continued demand for Nvidia Corp's NVDA AI chips, Bloomberg reports. Also Read: Semiconductor ETFs Take A Beating, Dragged Lower By Nvidia, AMD, and Broadcom Stocks Wall Street is betting on a bounce-back in demand for mobile devices backed by Apple's adoption of Wi-Fi 7 on the iPhone 16 and 16 Pro. According to the Bloomberg report, analysts expect Taiwan Semiconductor's revenue to grow 37% for the third quarter. Recently, Taiwan Semiconductor and Samsung Electronics SSNLF officials expressed optimism for the AI industry. Taiwan Semiconductor now earns more than 50% of its revenue from high-performance computing, a business segment driven by AI demand. The Nvidia supplier is also the leading manufacturer of the Apple Inc AAPL iPhone's central processor. Production yield at the Arizona facility is reportedly at par with that at its Taiwan facilities, signaling further optimism for the industry. Taiwan Semiconductor stock has increased 82% in the last 12 months. Investors can gain exposure to the stock through the SPDR S&P Emerging Asia Pacific ETF GMF and the ProShares Nanotechnology ETF TINY. Price Action: TSM stock traded lower by 0.80% to $161.52 premarket at the last check on Tuesday. Also Read: Intel Eyes Mobileye Stake Sale Amid Pressure, Stock Slides Image via Shutterstock Market News and Data brought to you by Benzinga APIs

TSMC revenue increases by 33% in August as AI chip demand holds up

Nvidia's go-to chipmaker is also the main manufacturer for the iPhone's main processor. Apple Inc. on Monday unveiled the iPhone 16, built for AI "from the ground up" but with capabilities that will be gradually added to the device via software updates. Wall Street is betting on a bounce-back in demand for mobile devices. Apple's adoption of Wi-Fi 7 on the iPhone 16 and 16 Pro should accelerate technology penetration and boost demand for TSMC's N6 (7-nanometer) and N4 (5-nanometer) nodes already used by Broadcom and MediaTek and others for Wi-Fi 7 chip production. A18 and A18 Pro processor performance gains align with our expectations, reinforcing a positive outlook for TSMC's N3E node sales growth.