TAIPEI (Reuters) -Taiwan Semiconductor Manufacturing Co, the dominant producer of superior chips utilized in synthetic intelligence (AI) purposes, is predicted to report a 30% soar in second-quarter revenue on Thursday due to hovering demand.
The world’s largest contract chipmaker, whose prospects embody Apple and Nvidia, has benefited from a surge in direction of AI.
TSMC is about to report a web revenue of T$238.8 billion for the quarter ended June 30, in keeping with an LSEG SmartEstimate drawn from 21 analysts. SmartEstimates give larger weighting to forecasts from analysts who’re extra persistently correct.
That estimate compares to the 2023 second-quarter web revenue of T$181.8 billion.
Whereas TSMC’s inventory – and the broader Taiwan market – has reached report highs, it dropped 2.4% on Wednesday after Republican presidential candidate Donald Trump mentioned Taiwan “did take about 100% of our chip enterprise” and may pay the U.S. for its defence because it doesn’t give the nation something.
TSMC’s American Depository Receipts slid 8% on Wednesday.
TSMC final week reported a soar in Taiwan-dollar denominated second-quarter income, comfortably beating market expectations. It’s going to give third-quarter income steerage in U.S. {dollars}.
On Wednesday, ASML, the world’s greatest chipmaking tools provider, reported better-than-expected second-quarter earnings.
TSMC, at its quarterly earnings name beginning at 0600 GMT on Thursday, will replace its outlook for the present quarter in addition to for the total 12 months, together with its capital expenditure, because it races to broaden manufacturing.
TSMC is spending billions of {dollars} constructing new factories abroad, together with $65 billion on three crops within the U.S. state of Arizona, although it has mentioned most manufacturing will stay in Taiwan.
On its final earnings name in April, TSMC maintained its steerage for capital spending this 12 months at $28 billion to $32 billion, in contrast with final 12 months’s $30.45 billion, and mentioned 70% to 80% of the entire would go in direction of superior applied sciences.
The second half of the 12 months is historically the height season for Taiwanese tech corporations as they race to produce prospects forward of the year-end vacation season in main Western markets.
The AI growth has helped drive up the value of shares in Asia’s most useful firm, with TSMC’s Taipei-listed inventory leaping 74% to this point this 12 months to historic highs, in contrast with a 31% achieve for the broader market.
TSMC, colloquially referred to in Taiwan because the “sacred mountain defending the nation” for its important function in Taiwan’s export-dependent financial system, faces little competitors, although each Intel and Samsung try to problem its dominance.
(Reporting by Ben Blanchard; Enhancing by Christopher Cushing)
