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TSMC’s Q1 Revenue Surges 16.5%, Beating Market Expectations

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, reported a 16.5% increase in revenue for the first quarter of 2024, beating market expectations. The strong revenue growth was driven by rising demand for artificial intelligence (AI).

TSMC, a major supplier to companies like Apple and Nvidia, has been able to capitalize on the wave of AI demand to offset the decline in demand caused by the COVID-19 pandemic, pushing its stock price to an all-time high.

According to Reuters, TSMC’s revenue for the first three months of this year was $18.54 billion, up from $16.72 billion in the same period last year. This figure is higher than the Taiwanese chipmaker’s previous forecast of around $18 billion.

TSMC’s revenue in the first quarter of this year also exceeded the average analyst forecast from LSEG SmartEstimate, which was based on data from 23 analysts.

The first half of the year is traditionally a quieter period for TSMC due to the end of the holidays and the decline in global demand for goods such as tablets and smartphones in Western markets. However, this year, the trend towards AI has led to an increase in demand for the Taiwanese chipmaker’s services even during this period.

TSMC’s revenue in March 2024 increased by 34.3% year-on-year to $6.1 billion. This represents a 7.5% growth compared to the previous month.

TSMC, which is valued at $662 billion and is the most valuable listed company in Asia, will release its first quarter earnings report on April 18. Analysts expect TSMC’s net profit to grow by 4% in the first quarter.

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