TSMC’s Q2 revenue surges on AI, far exceeding market expectations

By Ben Blanchard and Faith Hung

TAIPEI (Reuters) – TSMC, the world’s top chipmaker, reported strong second-quarter revenue growth on Wednesday, far beating market forecasts, driven by growing demand for artificial intelligence (AI) applications.

Taiwan Semiconductor Manufacturing Co, whose customers include Apple and Nvidia, has benefited from the rise of AI that has helped it weather a pandemic-related demand slump and pushed TSMC’s stock price to a record high.

Revenue for the April-June period this year came to T$673.51 billion ($20.67 billion), according to Reuters calculations, compared with an LSEG SmartEstimate, compiled by 21 analysts, of T$654.27 billion.

This represents a 32% year-on-year growth, compared to $15.68 billion for the same period the previous year.

This is not a direct comparison as TSMC provides monthly revenue data only in Taiwanese dollars, but gives quarterly revenue figures and its outlook on its quarterly earnings calls, both in US dollars.

In its last earnings call in April, Taiwan Semiconductor Manufacturing Co forecast second-quarter revenue of $19.6 billion to $20.4 billion.

For the month of June alone, TSMC reported that its revenue increased 33% from a year earlier to T$207.87 billion.

The company did not provide details in its brief income statement.

TSMC, Asia’s most valuable publicly traded company with a market capitalization of $830 billion, provided no details or forecasts in its brief press release.

The company is expected to report its second-quarter results on July 18, when it will also update its outlook and plans for the current quarter and the remainder of the year.

TSMC is expected to report a 30% increase in second-quarter net profit from a year earlier, according to a SmartEstimate report from LSEG.

Taipei-listed shares of TSMC, trading at all-time highs, closed up 0.5 percent on Wednesday ahead of the sales data, in line with the broader market.

Shares are up 76% year-to-date, compared with a 34% gain for the broader market.

TSMC’s ADRs jumped 4.8% to a record $192.79 on Monday, briefly boosting the company’s market value to $1 trillion.

($1 = 32.5790 Taiwan dollars)

(Reporting by Ben Blanchard and Faith Hung; Editing by Christopher Cushing and Kim Coghill)

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