TSMC's Q2 Profit Expected to Surge 30% Amid AI Chip Demand Boom
9 Sources
9 Sources
[1]
TSMC second-quarter profit seen jumping 30% on surging AI chip demand
TAIPEI, July 15 (Reuters) - Taiwan Semiconductor Manufacturing Co (2330.TW)New Tab, opens new tab, the main producer of advanced chips used in artificial intelligence applications, is expected to report a 30% rise in second-quarter profit on Thursday thanks to soaring demand. The world's largest contract chipmaker, whose customers include Apple (AAPL.O)New Tab, opens new tab and Nvidia (NVDA.O)New Tab, opens new tab, has benefited from a surge towards AI that has pushed TSMC's stock - and the broader Taiwan market (.TWII)New Tab, opens new tab - to record highs. Last week, its American Depositary Receipts topped a trillion dollar market value. TSMC is set to report a net profit of T$236.1 billion ($7.25 billion) for the quarter ended June 30, according to a LSEG SmartEstimate drawn from 20 analysts. SmartEstimates give greater weighting to forecasts from analysts who are more consistently accurate. That estimate compares to the 2023 second-quarter net profit of T$181.8 billion. TSMC last week reported a jump in second-quarter revenue, comfortably beating market expectations. "I expect the third quarter outlook for all of their products to be very good," said President Capital Management Co Chairman Li Fang-kuo. TSMC, at its quarterly earnings call at 0600 GMT on Thursday, will update its outlook for the current quarter as well as for the full year, including its capital expenditure as it races to expand production. TSMC is spending billions building new factories overseas, including $65 billion on three plants in the U.S. state of Arizona, though it says most manufacturing will remain in Taiwan. On its last earnings call in April, TSMC maintained its guidance for capital spending this year at $28 billion to $32 billion, compared with last year's $30.45 billion, and said 70% to 80% of that would go towards advanced technologies. "TSMC could raise their capital spending," said KGI Securities Investment Advisory Co Chairman Chu Yen-min. "There are many positive factors which will help their stock price and support the broader market." The AI boom has helped drive up the price of shares in Asia's most valuable company, with TSMC's Taipei-listed stock leaping 75% so far this year to historic highs, compared with a 33% gain for the broader market. TSMC, colloquially referred to the "sacred mountain protecting the country" for its critical role in Taiwan's export-dependent economy, faces little competition, though both Intel (INTC.O)New Tab, opens new tab and Samsung (005930.KS)New Tab, opens new tab are trying to challenge that dominance. ($1 = 32.5480 Taiwan dollars) Reporting by Ben Blanchard; Additional reporting by Roger Tung; Editing by Miral Fahmy
[2]
TSMC second-quarter profit seen jumping 30% on surging AI chip demand
Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker is set to report a net profit of T$236.1 billion ($7.25 billion) for the quarter that ended June 30, according to a LSEG SmartEstimate drawn from 20 analysts. TSMC customer includes Apple and Nvidia. TSMC is spending billions building new factories overseas as well. Taiwan Semiconductor Manufacturing Co, the main producer of advanced chips used in artificial intelligence applications, is expected to report a 30% rise in second-quarter profit on Thursday thanks to soaring demand. The world's largest contract chipmaker, whose customers include Apple and Nvidia, has benefited from a surge towards AI that has pushed TSMC's stock - and the broader Taiwan market - to record highs. Last week, its American Depositary Receipts topped a trillion dollar market value. TSMC is set to report a net profit of T$236.1 billion ($7.25 billion) for the quarter ended June 30, according to a LSEG SmartEstimate drawn from 20 analysts. SmartEstimates give greater weighting to forecasts from analysts who are more consistently accurate. That estimate compares to the 2023 second-quarter net profit of T$181.8 billion. TSMC last week reported a jump in second-quarter revenue, comfortably beating market expectations. "I expect the third quarter outlook for all of their products to be very good," said President Capital Management Co Chairman Li Fang-kuo. TSMC, at its quarterly earnings call at 0600 GMT on Thursday, will update its outlook for the current quarter as well as for the full year, including its capital expenditure as it races to expand production. TSMC is spending billions building new factories overseas, including $65 billion on three plants in the U.S. state of Arizona, though it says most manufacturing will remain in Taiwan. On its last earnings call in April, TSMC maintained its guidance for capital spending this year at $28 billion to $32 billion, compared with last year's $30.45 billion, and said 70% to 80% of that would go towards advanced technologies. "TSMC could raise their capital spending," said KGI Securities Investment Advisory Co Chairman Chu Yen-min. "There are many positive factors which will help their stock price and support the broader market." The AI boom has helped drive up the price of shares in Asia's most valuable company, with TSMC's Taipei-listed stock leaping 75% so far this year to historic highs, compared with a 33% gain for the broader market. TSMC, colloquially referred to the "sacred mountain protecting the country" for its critical role in Taiwan's export-dependent economy, faces little competition, though both Intel and Samsung are trying to challenge that dominance. ($1 = 32.5480 Taiwan dollars)
[3]
TSMC second-quarter profit seen jumping 30% on surging AI chip demand
TAIPEI - Taiwan Semiconductor Manufacturing Co, the main producer of advanced chips used in artificial intelligence applications, is expected to report a 30% rise in second-quarter profit on Thursday thanks to soaring demand. The world's largest contract chipmaker, whose customers include Apple and Nvidia, has benefited from a surge towards AI that has pushed TSMC's stock - and the broader Taiwan market - to record highs. Last week, its American Depositary Receipts topped a trillion dollar market value. TSMC is set to report a net profit of T$236.1 billion ($7.25 billion) for the quarter ended June 30, according to a LSEG SmartEstimate drawn from 20 analysts. SmartEstimates give greater weighting to forecasts from analysts who are more consistently accurate. That estimate compares to the 2023 second-quarter net profit of T$181.8 billion. TSMC last week reported a jump in second-quarter revenue, comfortably beating market expectations. "I expect the third quarter outlook for all of their products to be very good," said President Capital Management Co Chairman Li Fang-kuo. TSMC, at its quarterly earnings call at 0600 GMT on Thursday, will update its outlook for the current quarter as well as for the full year, including its capital expenditure as it races to expand production. TSMC is spending billions building new factories overseas, including $65 billion on three plants in the U.S. state of Arizona, though it says most manufacturing will remain in Taiwan. On its last earnings call in April, TSMC maintained its guidance for capital spending this year at $28 billion to $32 billion, compared with last year's $30.45 billion, and said 70% to 80% of that would go towards advanced technologies. "TSMC could raise their capital spending," said KGI Securities Investment Advisory Co Chairman Chu Yen-min. "There are many positive factors which will help their stock price and support the broader market." The AI boom has helped drive up the price of shares in Asia's most valuable company, with TSMC's Taipei-listed stock leaping 75% so far this year to historic highs, compared with a 33% gain for the broader market. TSMC, colloquially referred to the "sacred mountain protecting the country" for its critical role in Taiwan's export-dependent economy, faces little competition, though both Intel and Samsung are trying to challenge that dominance. ($1 = 32.5480 Taiwan dollars) (Reporting by Ben Blanchard; Additional reporting by Roger Tung; Editing by Miral Fahmy)
[4]
TSMC second-quarter profit seen jumping 30% on surging AI chip demand
* Stock price has surged on chip demand for AI applications TAIPEI, July 15 (Reuters) - Taiwan Semiconductor Manufacturing Co, the main producer of advanced chips used in artificial intelligence applications, is expected to report a 30% rise in second-quarter profit on Thursday thanks to soaring demand. The world's largest contract chipmaker, whose customers include Apple and Nvidia, has benefited from a surge towards AI that has pushed TSMC's stock - and the broader Taiwan market - to record highs. Last week, its American Depositary Receipts topped a trillion dollar market value. TSMC is set to report a net profit of T$236.1 billion ($7.25 billion) for the quarter ended June 30, according to a LSEG SmartEstimate drawn from 20 analysts. SmartEstimates give greater weighting to forecasts from analysts who are more consistently accurate. That estimate compares to the 2023 second-quarter net profit of T$181.8 billion. TSMC last week reported a jump in second-quarter revenue, comfortably beating market expectations. "I expect the third quarter outlook for all of their products to be very good," said President Capital Management Co Chairman Li Fang-kuo. TSMC, at its quarterly earnings call at 0600 GMT on Thursday, will update its outlook for the current quarter as well as for the full year, including its capital expenditure as it races to expand production. TSMC is spending billions building new factories overseas, including $65 billion on three plants in the U.S. state of Arizona, though it says most manufacturing will remain in Taiwan. On its last earnings call in April, TSMC maintained its guidance for capital spending this year at $28 billion to $32 billion, compared with last year's $30.45 billion, and said 70% to 80% of that would go towards advanced technologies. "TSMC could raise their capital spending," said KGI Securities Investment Advisory Co Chairman Chu Yen-min. "There are many positive factors which will help their stock price and support the broader market." The AI boom has helped drive up the price of shares in Asia's most valuable company, with TSMC's Taipei-listed stock leaping 75% so far this year to historic highs, compared with a 33% gain for the broader market. TSMC, colloquially referred to the "sacred mountain protecting the country" for its critical role in Taiwan's export-dependent economy, faces little competition, though both Intel and Samsung are trying to challenge that dominance. ($1 = 32.5480 Taiwan dollars) (Reporting by Ben Blanchard; Additional reporting by Roger Tung; Editing by Miral Fahmy)
[5]
TSMC second-quarter profit seen jumping 30% on surging AI chip demand - ET Telecom
TAIPEI: Taiwan Semiconductor Manufacturing Co, the main producer of advanced chips used in artificial intelligence applications, is expected to report a 30% rise in second-quarter profit on Thursday thanks to soaring demand. The world's largest contract chipmaker, whose customers include Apple and Nvidia, has benefited from a surge towards AI that has pushed TSMC's stock - and the broader Taiwan market - to record highs. Last week, its American Depositary Receipts topped a trillion dollar market value. TSMC is set to report a net profit of T$236.1 billion ($7.25 billion) for the quarter ended June 30, according to a LSEG SmartEstimate drawn from 20 analysts. SmartEstimates give greater weighting to forecasts from analysts who are more consistently accurate. That estimate compares to the 2023 second-quarter net profit of T$181.8 billion. TSMC last week reported a jump in second-quarter revenue, comfortably beating market expectations. "I expect the third quarter outlook for all of their products to be very good," said President Capital Management Co Chairman Li Fang-kuo. TSMC, at its quarterly earnings call at 0600 GMT on Thursday, will update its outlook for the current quarter as well as for the full year, including its capital expenditure as it races to expand production. TSMC is spending billions building new factories overseas, including $65 billion on three plants in the U.S. state of Arizona, though it says most manufacturing will remain in Taiwan. On its last earnings call in April, TSMC maintained its guidance for capital spending this year at $28 billion to $32 billion, compared with last year's $30.45 billion, and said 70% to 80% of that would go towards advanced technologies. "TSMC could raise their capital spending," said KGI Securities Investment Advisory Co Chairman Chu Yen-min. "There are many positive factors which will help their stock price and support the broader market." The AI boom has helped drive up the price of shares in Asia's most valuable company, with TSMC's Taipei-listed stock leaping 75% so far this year to historic highs, compared with a 33% gain for the broader market. TSMC, colloquially referred to the "sacred mountain protecting the country" for its critical role in Taiwan's export-dependent economy, faces little competition, though both Intel and Samsung are trying to challenge that dominance.
[6]
TSMC second-quarter profit seen jumping 30% on surging AI chip demand
Taiwan Semiconductor Manufacturing Co, the main producer of advanced chips used in artificial intelligence applications, is expected to report a 30% rise in second-quarter profit on Thursday thanks to soaring demand. The world's largest contract chipmaker, whose customers include Apple and Nvidia, has benefited from a surge towards AI that has pushed TSMC's stock - and the broader Taiwan market - to record highs. Last week, its American Depositary Receipts topped a trillion dollar market value. TSMC is set to report a net profit of T$236.1 billion ($7.25 billion) for the quarter ended June 30, according to a LSEG SmartEstimate drawn from 20 analysts. SmartEstimates give greater weighting to forecasts from analysts who are more consistently accurate. That estimate compares to the 2023 second-quarter net profit of T$181.8 billion. (For top technology news of the day, subscribe to our tech newsletter Today's Cache) TSMC last week reported a jump in second-quarter revenue, comfortably beating market expectations. "I expect the third quarter outlook for all of their products to be very good," said President Capital Management Co Chairman Li Fang-kuo. TSMC, at its quarterly earnings call at 0600 GMT on Thursday, will update its outlook for the current quarter as well as for the full year, including its capital expenditure as it races to expand production. TSMC is spending billions building new factories overseas, including $65 billion on three plants in the U.S. state of Arizona, though it says most manufacturing will remain in Taiwan. On its last earnings call in April, TSMC maintained its guidance for capital spending this year at $28 billion to $32 billion, compared with last year's $30.45 billion, and said 70% to 80% of that would go towards advanced technologies. "TSMC could raise their capital spending," said KGI Securities Investment Advisory Co Chairman Chu Yen-min. "There are many positive factors which will help their stock price and support the broader market." The AI boom has helped drive up the price of shares in Asia's most valuable company, with TSMC's Taipei-listed stock leaping 75% so far this year to historic highs, compared with a 33% gain for the broader market. TSMC, colloquially referred to the "sacred mountain protecting the country" for its critical role in Taiwan's export-dependent economy, faces little competition, though both Intel and Samsung are trying to challenge that dominance. Read Comments
[7]
TSMC second-quarter profit seen jumping 30% on surging AI chip demand
That estimate compares to the 2023 second-quarter net profit of T$181.8 billion. TSMC last week reported a jump in second-quarter revenue, comfortably beating market expectations. "I expect the third quarter outlook for all of their products to be very good," said President Capital Management Co Chairman Li Fang-kuo. TSMC, at its quarterly earnings call at 0600 GMT on Thursday, will update its outlook for the current quarter as well as for the full year, including its capital expenditure as it races to expand production. TSMC is spending billions building new factories overseas, including $65 billion on three plants in the U.S. state of Arizona, though it says most manufacturing will remain in Taiwan. On its last earnings call in April, TSMC maintained its guidance for capital spending this year at $28 billion to $32 billion, compared with last year's $30.45 billion, and said 70% to 80% of that would go towards advanced technologies. "TSMC could raise their capital spending," said KGI Securities Investment Advisory Co Chairman Chu Yen-min. "There are many positive factors which will help their stock price and support the broader market." The AI boom has helped drive up the price of shares in Asia's most valuable company, with TSMC's Taipei-listed stock leaping 75% so far this year to historic highs, compared with a 33% gain for the broader market. TSMC, colloquially referred to the "sacred mountain protecting the country" for its critical role in Taiwan's export-dependent economy, faces little competition, though both Intel and Samsung are trying to challenge that dominance. (Reporting by Ben Blanchard; Additional reporting by Roger Tung; Editing by Miral Fahmy)
[8]
TSMC reports earnings this week. Here's what to expect
Taiwan Semiconductor Manufacturing Company makes most of the world's advanced chips, and demand amid the generative artificial intelligence boom is expected to boost its profit 30% year-over-year. The Taiwanese chipmaker is expected to report net income of NT$236.4 billion, or $7.3 billion, for the second quarter of 2024, according to FactSet analysts' estimates -- a 30% increase from a year ago, when it reported profit of NT$181.8 billion. TSMC, which has an exclusive partnership with AI chip designer Nvidia and fabricates chips for Apple, has seen its shares rise 82.9% so far this year. The chipmaker reports second-quarter earnings on Thursday. In June, TSMC said its net revenue in May rose 30% year-over-year to $7.1 billion. While that was a decrease of 2.7% from April, the company's revenue for the period of January through May saw a year-over-year increase of 27%. Earlier that month, TSMC chairman and chief executive C.C. Wei reaffirmed previous projections that the chip market, excluding the memory sector, would experience 10% growth this year driven by the AI boom. TSMC predicted in April its second-quarter sales could rise by up to 30% -- higher than projected -- thanks to customers including Nvidia and Apple. It set second-quarter revenue expectations to between $19.6 billion and $20.4 billion, higher than the earlier estimated $19.1 billion. TSMC also said it was keeping plans to spend up to $32 billion this year, a majority of which will go toward advanced technologies. "Moving into second quarter 2024, we expect our business to be supported by strong demand for our industry-leading 3nm and 5nm technologies, partially offset by continued smartphone seasonality," Wendell Huang, senior vice president and chief financial officer of TSMC, said in a statement in April. 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.
[9]
What's Going On With Taiwan Semiconductor Stock Tuesday? - Taiwan Semiconductor (NYSE:TSM)
ASML expects nearly €5 billion in Q2 orders due to Taiwan Semiconductor's AI chip demand. Taiwan Semiconductor Manufacturing Co TSM stock is trading higher Tuesday as the artificial intelligence tailwinds keep blowing from every end. ASML Holding ASML anticipates nearly €5 billion in orders in the second quarter, driven by Taiwan Semiconductor's demand for AI chip production tools. Taiwan Semiconductor's robust orders for ASML's EUV product line are set to boost ASML's second-quarter order value above consensus estimates. Super Micro Computer Inc SMCI CEO Charles Liang in an interview with CNBC's Jim Cramer on Monday expressed optimism about the AI server company's growth trajectory, stating, "this AI revolution can be bigger even than the industrial revolution." Taiwan Semiconductor is expected to report a 30% increase in second-quarter profits, driven by high AI demand. The projected net profit is about $7.25 billion, as revenue rises 32% to $20.7 billion. Taiwan Semiconductor stock gained over 82% year-to-date. Investors can gain exposure to the stock through Vanguard FTSE Emerging Markets ETF VWO and First Trust NASDAQ Technology Dividend Index Fund TDIV. Price Action: TSM shares traded higher by 1.65% to $188.27 premarket at the last check Tuesday. Read Next: Bank of America's Q2 Earnings: Revenue And EPS Beat, $1.5B Credit Loss Provision, Sees Q4 NII Growth Photo by Jack Hong via Shutterstock Market News and Data brought to you by Benzinga APIs
Share
Share
Copy Link
Taiwan Semiconductor Manufacturing Co (TSMC) is projected to report a 30% jump in second-quarter profit, driven by soaring demand for artificial intelligence chips. The world's largest contract chipmaker is set to benefit from the AI boom, despite a broader slowdown in the global semiconductor industry.
TSMC's Projected Q2 Performance
Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker, is expected to report a significant boost in its second-quarter profit. Analysts predict a 30% year-on-year increase, with net profit rising to T$181.1 billion ($5.85 billion)
1
. This surge is primarily attributed to the growing demand for artificial intelligence (AI) chips, which has created a bright spot in an otherwise sluggish global semiconductor market.AI Chip Demand Driving Growth
The AI boom, fueled by the success of ChatGPT and similar technologies, has led to increased orders for TSMC's most advanced chips. These high-performance chips are essential for training large language models and powering AI applications. Major tech companies like Nvidia and Advanced Micro Devices (AMD) are ramping up their orders to meet the escalating demand for AI-related products
2
.Market Position and Future Outlook
TSMC's dominant position in the advanced chip manufacturing space has allowed it to capitalize on the AI trend. The company is a crucial supplier to tech giants like Apple and Nvidia, which rely on its cutting-edge chip production capabilities. Despite the overall slowdown in the global semiconductor industry, TSMC's focus on high-performance computing (HPC) chips for AI applications is expected to drive growth in the coming quarters
3
.Challenges and Competitive Landscape
While the AI chip demand presents a significant opportunity, TSMC faces challenges in maintaining its technological edge. Competitors like Samsung Electronics and Intel are investing heavily in advanced chip manufacturing to close the gap. Additionally, geopolitical tensions between China and Taiwan add an element of uncertainty to TSMC's operations and global supply chains
4
.Related Stories
Investment and Expansion Plans
To meet the growing demand and maintain its competitive advantage, TSMC has announced significant investment plans. The company is set to spend $32 billion this year on advanced chip production capacity. This includes expanding its facilities in Taiwan and building new fabs in Japan and the United States, aligning with the global trend of semiconductor supply chain diversification
5
.Impact on Global Semiconductor Industry
TSMC's performance is often seen as a bellwether for the global tech industry. The company's strong growth in AI-related chip production could signal a shift in the semiconductor market, with an increasing focus on high-performance computing and AI applications. This trend may reshape investment priorities and technological development across the industry in the coming years.
References
Summarized by
Navi
[2]
[4]
Related Stories
Weekly Highlights
1
Anthropic Secures $13B in Funding, Reaching $183B Valuation Amid AI Industry Boom
Business and Economy
2
Tesla Proposes $1 Trillion Pay Package for Elon Musk Tied to Ambitious AI and Robotics Goals
Business and Economy
3
Anthropic's $1.5B AI Copyright Settlement: A Landmark Deal Under Scrutiny
Policy and Regulation
Weekly Highlights
Explore today's top stories
Your Daily Dose of Curated AI News
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.
