TSMC sales ride AI demand boost to beat estimates
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TSMC is the primary contract manufacturer of Nvidia’s AI accelerator chips.
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TAIPEI – Taiwan Semiconductor Manufacturing Company (TSMC) has reported better-than-expected sales on a boom in artificial intelligence (AI) applications demanding more of the industry-leading firm’s chipmaking capacity.
Second-quarter sales totalled NT$480.8 billion (S$20.7 billion), according to Bloomberg’s calculations, compared with an average analyst estimate of NT$476.2 billion. Revenue in June came in at NT$156.4 billion.
TSMC is the primary contract manufacturer of Nvidia’s AI accelerator chips, widely seen as the best hardware for training large data models such as the one underpinning OpenAI’s ChatGPT.
The Taiwanese firm’s shares were up slightly on Monday before it reported the monthly sales figure.
Goldman Sachs analysts raised their target price for the company to NT$700. The stock has risen more than 25 per cent since the beginning of 2023, despite the company saying it may temper capital expenditure and that revenue for the year may fall to low- to mid-single digits in United States dollar terms.
“We view TSMC as the key AI enabler among our Taiwan (semiconductor) coverage, thanks to its leadership stance in leading-edge nodes and advanced packaging technology,” said Goldman Sachs analysts Bruce Lu and Evelyn Yu. bloomberg
