TSMC beats expectations in Q2 with surging demand for advanced chips in AI applications.

From CNBC: 2024-07-18 01:54:36

Taiwan Semiconductor Manufacturing Company exceeded revenue and profit expectations in Q2 thanks to soaring demand for advanced chips in AI applications. Net revenue surged by 40.1% YoY to NT$673.51 billion with net income increasing by 36.3% YoY to NT$247.85 billion. TSMC projects Q2 revenue to be between $19.6 billion and $20.4 billion. Surging demand for advanced chips has boosted TSMC’s shares by nearly 70% this year. The chip giant, competing with Samsung and Intel, counts Apple and Nvidia among its clients. TSMC currently produces 3-nanometer chips with plans for mass production of 2-nanometer chips in 2025, citing higher power and efficiency. Brady Wang of Counterpoint Research expects the 3-nanometer capacity to double in 2024 compared to the previous year. Needham analysts anticipate TSMC to raise its 2024 revenue growth target and have increased the price target to $210 from $168 on its U.S.-listed shares. TSMC held 62% of the global foundry market share in Q1, up from 59% from a year ago, per Counterpoint Research.



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