Taiwan Semiconductor Manufacturing Co. (TSM) has reported a 40% year-over-year increase in its second-quarter revenue due to rising demand for artificial intelligence (A.I.) microchips.
TSMC, as the company is known, makes about 60% of the world’s microchips and processors, including for companies such as Nvidia (NVDA) and Apple (AAPL).
The company reported revenue of 673.51 billion New Taiwan dollars ($20.82 billion U.S.), which beat forecasts of NT$657.58 billion.
Net income in Q2 was NT$247.85 billion compared to NT$238.8 billion that had been expected among analysts who track the company’s progress.
TSMC’s revenue in Q2 rose 40.1% from a year earlier, while its profit increased 36.3%.
Chief executive officer (CEO) C.C. Wei attributed the strong results to demand for A.I. microchips and processors.
However, the results were partially offset by continued weakness in chips used for smartphones and other handheld devices.
In terms of forward guidance, TSMC said it expects revenue of $22.4 billion U.S. to $23.2 billion U.S. in the current third quarter of the year.
CEO Wei said on an earnings call with analysts and media that he continues to expect 2024 to be “a strong growth year for TSMC.”
TSMC held a 62% share of the global foundry market in this year’s first quarter, up from 59% in the same period a year earlier, according to data from Counterpoint Research.
The stock of TSMC has risen 65% over the last 12 months to trade at $171.20 U.S. per share.
