TAIPEI (Reuters) – Taiwan Semiconductor Manufacturing Co, the principle producer of superior chips utilized in synthetic intelligence purposes, is anticipated to report a 30% rise in second-quarter revenue on Thursday due to hovering demand.
The world’s largest contract chipmaker, whose prospects embrace Apple (NASDAQ:) and Nvidia (NASDAQ:), has benefited from a surge in the direction of AI that has pushed TSMC’s inventory – and the broader Taiwan market – to file highs. Final week, its American Depositary Receipts topped a trillion greenback market worth.
TSMC is about to report a internet revenue of T$236.1 billion ($7.25 billion) for the quarter ended June 30, based on a LSEG SmartEstimate drawn from 20 analysts. SmartEstimates give higher weighting to forecasts from analysts who’re extra constantly correct.
That estimate compares to the 2023 second-quarter internet revenue of T$181.8 billion.
TSMC final week reported a bounce in second-quarter income, comfortably beating market expectations.
“I expect the third quarter outlook for all of their products to be very good,” stated President Capital Administration Co Chairman Li Fang-kuo.
TSMC, at its quarterly earnings name at 0600 GMT on Thursday, will replace its outlook for the present quarter in addition to for the complete yr, together with its capital expenditure because it races to develop manufacturing.
TSMC is spending billions constructing new factories abroad, together with $65 billion on three vegetation within the U.S. state of Arizona, although it says most manufacturing will stay in Taiwan.
On its final earnings name in April, TSMC maintained its steering for capital spending this yr at $28 billion to $32 billion, in contrast with final yr’s $30.45 billion, and stated 70% to 80% of that may go in the direction of superior applied sciences.
“TSMC could raise their capital spending,” stated KGI Securities Funding Advisory Co Chairman Chu Yen-min. “There are many positive factors which will help their stock price and support the broader market.”
The AI growth has helped drive up the worth of shares in Asia’s most respected firm, with TSMC’s Taipei-listed inventory leaping 75% to this point this yr to historic highs, in contrast with a 33% acquire for the broader market.
TSMC, colloquially referred to the “sacred mountain protecting the country” for its vital function in Taiwan’s export-dependent economic system, faces little competitors, although each Intel (NASDAQ:) and Samsung (KS:) are attempting to problem that dominance.
($1 = 32.5480 Taiwan {dollars})
