TSMC's July Sales Surge 45% on Strong AI Chip Demand

Taiwan Semiconductor's July sales surge nearly 45% amid AI chip demand

Taiwan Semiconductor Manufacturing's (NYSE:TSM) revenue for July jumped 44.7% year-over-year to about NT$256.95B amid growing demand for artificial intelligence chips for use in AI products. TSM -- which produces chips for some of the world's largest tech companies including Apple (AAPL), Nvidia (NVDA) and AMD (AMD) -- saw a month-over-month increase of 23.6%, as it had generated revenue of NT$207.87B in June. Revenue for the seven months, January through July 2024, amounted to NT$1.523T, surging 30.5% compared to the same period in 2023. TSM's second quarter results had surpassed estimates and third quarter revenue outlook was seen above estimates, amid a surge in demand for chips used for AI products. For the third quarter, the company expects its business to be helped by strong smartphone and AI-related demand for its leading-edge process technologies. More on Taiwan Semiconductor Taiwan Semiconductor Q2: Pullback Offers A GARP Opportunity TSMC: A Huge Opportunity To Buy The Crown Jewel Of Semiconductors Taiwan Semiconductor: 2nm May Be A Growth Driver, Buy The Meltdown Taiwan Semiconductor to raise prices on 5nm and 3nm nodes in 2025: report SA Asks: Which chip stocks are undervalued right now?

TSMC July Sales Jump 45%, Buoyed by Strong AI Chip Demand

The buoyant sales at TSMC, which supplies chips to Nvidia and Apple, shows demand for AI chips remains strong. Taiwan Semiconductor Manufacturing Co. (TSM), the world's largest contract chipmaker, said July revenue surged 45% year-over-year, showing buoyant demand for the chips that have helped power the artificial intelligence (AI) boom. Sales for the month reached 256.95 billion New Taiwanese dollars ($7.93 billion), while revenue between January and July soared 30.5%. TSMC last month reported second-quarter results that beat analysts' estimates on booming AI demand and projected an up to 33% gain in third-quarter sales. TSMC supplies chips to both AI darling Nvidia (NVDA) and iPhone maker Apple (AAPL). TSMC is a beneficiary of the CHIPS and Science Act aimed at bringing advanced production of chips to the U.S. The White House announced plans to award TSMC up to $6.6 billion in grants earlier this year, which the Taiwanese firm said would help it fund a third factory to its site in Arizona. The news of the July revenue boost lifted TSMC's American depositary receipts (ADRs), which gained 2% an hour before the opening bell Friday.

TSMC sales grow 45% in July on strong AI chip demand

(Bloomberg) -- Taiwan Semiconductor Manufacturing Co.'s revenue rose 45 per cent in July, accelerating its pace of growth from the June quarter and bolstering hopes for sustained strong demand for artificial intelligence chips from the likes of Nvidia Corp. Sales for the month reached NT$256.95 billion (US$7.9 billion). For the third quarter, analysts project TSMC revenue should grow 37 per cent to NT$747.4 billion, with the July result suggesting TSMC may surpass those expectations. Taiwan's biggest company is one of the key bellwethers for AI demand, as the go-to chipmaker for leading accelerator makers Nvidia and Advanced Micro Devices Inc. It's also the sole supplier of processors for Apple Inc.'s iPhones, at a time the mobile device market is showing signs of bouncing off post-Covid era lows. Last month, the world's largest contract chipmaker raised its full-year growth outlook to beyond the maximum mid-20 per cent it had guided toward previously. TSMC offered an upbeat assessment of its business and prospects when it last reported earnings, with Chief Executive Officer C.C. Wei signaling the company may have room to raise prices as more of its customers transition to its most advanced technology and have to compete for limited capacity. High-performance computing, led by AI, contributed 52 per cent of TSMC's revenue last quarter, the first time it has accounted for more than half. Still, investors have started to question whether the billions of dollars Big Tech firms have invested in the infrastructure to support the AI boom will result in substantial returns, while a potential delay in Nvidia's development of a new generation of AI chips is spurring concerns over the progress of the emerging technology. TSMC's 44.7 per cent year-over-year sales surge, marking its second-highest sales gain in the past 20 months, aligned with our expectations for robust 3Q performance. This surge could indicate sustained, strong AI chip demand and significant 3-nanometer production orders from Apple, Qualcomm, and MediaTek. TSMC is well positioned to beat the top end of its US$23.2 billion 3Q sales guidance. - Charles Shum, analyst Worries about the global economic outlook over the past week interrupted the AI rally that had seen key players like TSMC gains billions in market value. Investors opted to cash out of some of the year's biggest gainers, pushing TSMC's shares down 10 per cent in a day, though the company recovered much of that in subsequent days as money managers saw a good buying opportunity.

TSMC's sales surged 45% due to AI chip demand

The company behind a majority of the world's advanced chips is seeing its sales surge amid the artificial intelligence boom. Taiwan Semiconductor Manufacturing Company (TSMC) reported revenue of NT$256.95 billion, or $7.9 billion, for July, up 23.6% from June, and up 44.7% from the previous year. In June, TSMC reported its net revenue in May grew 30% year-over-year to $7.1 billion. Sales from January through July amounted to NT$1,523.11 billion -- up 30.5% from the same period last year. 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 and is the only supplier of chips for Apple's iPhones, has seen its shares rise around 61% so far this year. TSMC'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. The company expects third-quarter revenue to be between $22.4 billion and 23.2 billion. TSMC chief executive C.C. Wei said on a call with analysts 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. In June, Wei reaffirmed previous projections that the chip market, excluding the memory sector, would experience 10% growth this year driven by AI demand. Earlier this year, TSMC received $6.6 billion in grants through the federal CHIPS and Science Act to support its first major U.S. chipmaking hub in Phoenix. TSMC already has two chipmaking facilities in Arizona expected to begin production in 2025 and 2028 and will use some of the new funding to build a third facility, increasing the company's investment from $40 million to $65 million.

TSMC stock jumps on robust July sales By Investing.com

Taiwan Semi (TSM) reported a significant surge in July sales, leading to its stock rising more than 4% Friday. Its U.S.-listed shares also rose at the open. According to analysts, TSMC's July revenue reached NT$256.953 billion, marking a 24% increase month-over-month from June's NT$207.869 billion. This impressive performance is said to position TSMC well ahead of typical quarterly linearity, covering 35% of both analysts' and consensus Q3 estimates, which stand at NT$741.223 billion and NT$746.279 billion, respectively. Analysts attribute this strong performance to several key tailwinds. "AI server demand remains robust, while standard server demand appears to be bouncing back," they noted. Additionally, TSMC is said to be benefiting from a strong ramp-up in Apple's second-half iPhone supply and Intel's increased forecasts for its Lunar Lake processors. However, analysts advise caution in extrapolating this early strength across the entire quarter. They state that while the July results are undeniably positive, past patterns suggest that TSMC often delivers stronger-than-expected results early in the quarter but ends up reporting more in-line with its initial guidance by quarter-end. Analysts say exchange rates have also played a role, with the USD/TWD exchange rate shifting favorably in July, although it remains slightly weaker than when TSMC provided its Q3 guidance. A weaker TWD generally benefits TSMC's top-line and gross margins. Given the strong start to the quarter and a positive outlook for TSMC, analysts maintain an Outperform rating on the stock with a target price of $1,175, supported by TSMC's long-term growth prospects in markets such as 5G, high-performance computing, and automotive sectors.

Apple, Nvidia Supplier TSMC Rises In Premarket Following Stellar 45% Revenue Boost In July Amid Strong AI Chip Demand - Taiwan Semiconductor (NYSE:TSM)

Apple, Nvidia supplier, Taiwan Semiconductor Mfg. Co. Ltd. TSM is experiencing a significant uptick in Friday's pre-market trading following the announcement of its impressive July 2024 revenue figures. What Happened: The semiconductor giant reported a consolidated revenue of approximately NT$256.95 billion ($7.9 billion) for July 2024, which is a 23.6% increase from June and a substantial 44.7% surge from July 2023. Furthermore, TSMC's revenue from January to July 2024 totaled NT$1,523.11 billion ($46.44 billion), a 30.5% increase compared to the same period in 2023. As per Benzinga Pro data, TSMC shares rose 3.54% in pre-market trading, reaching $170.38 from the previous close of $164.55. See Also: Elon Musk Says Warren Buffett Is 'Clearly Expecting A Correction' After Berkshire Sold Nearly Half Of Its Apple Stock Why It Matters: TSMC's impressive performance comes on the heels of its market capitalization reaching the $1 trillion mark in July. The company's shares have gained nearly 80% year-to-date, and several analysts have raised their price targets on the stock ahead of the company's second-quarter earnings report. However, it is not all smooth sailing for TSMC. The company, along with its leading client, Nvidia is facing production issues with Nvidia's most advanced artificial intelligence chips. These challenges could delay shipments planned for this year. Despite these hurdles, as per data compiled by Bloomberg, analysts predict a 37% growth in TSMC's third-quarter revenue to NT$747.4 billion. Given the robust July performance, TSMC may well exceed these projections. Read Next: Bears Betting Against Nvidia And Eli Lilly For 'Easy Money,' Says Jim Cramer: 'Those Are The Two Keys To This Market And Don't You Know It' Photo by Jack Hong via Shutterstock This story was generated using Benzinga Neuro and edited by Pooja Rajkumari Market News and Data brought to you by Benzinga APIs