TSMC posts record quarterly revenue on AI chip demand, beating forecasts
TSMC reported record third-quarter revenue of NT$1.49 trillion (HK$366.65 billion), up 50 per cent year-on-year and above market forecasts, driven by surging demand for artificial intelligence applications. The company, Asia's most valuable listed firm, will report full earnings next week.
Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker, reported on Thursday record third-quarter revenue of NT$1.49 trillion (HK$366.65 billion), beating market forecasts and rising 50 per cent from the year-earlier period due to surging demand for artificial intelligence (AI) applications.
Revenue in the July–September quarter came in at NT$1.49 trillion, according to Reuters calculations, compared with NT$989.92 billion in the year-ago period. An LSEG SmartEstimate, drawn from 19 analysts, had predicted third-quarter revenue of NT$1.46 trillion. For September alone, TSMC reported that revenue rose 54.6 per cent year-on-year to NT$511.86 billion.
TSMC, a major supplier to companies including Nvidia and Apple, said in July it expected third-quarter revenue of between US$44.6 billion and US$45.8 billion. The company gives its forecasts only in US dollars and not in Taiwan dollars.
TSMC, Asia's most valuable publicly listed company with a market capitalisation of US$2.1 trillion (HK$16.38 trillion), did not provide any details or forward guidance in its brief revenue statement. It is scheduled to report third-quarter earnings next Thursday, where it will also update its outlook and plans for the current quarter and the rest of the year.
TSMC is expected to report a 64 per cent on-year rise in third-quarter net profit to NT$740.8 billion, according to an LSEG SmartEstimate.
Separately on Thursday, Samsung Electronics projected its quarterly operating profit would top 100 trillion won (HK$586.68 billion), a world first for a technology company, estimating a nearly nine-fold jump in third-quarter earnings as booming demand for AI chips drove strong memory sales.
TSMC's Taipei-listed shares closed down 1.35 per cent on Thursday ahead of the release of the revenue data. The broader market closed down 1 per cent. The shares have risen 64.52 per cent so far this year, in line with the broader market.