TSMC posts record Q2 revenue as AI chip demand surges
What's the story
Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, has reported a record high revenue for the second quarter of this year. The company's revenue in the April-June period stood at NT$1.27 trillion ($39.62 billion), a 36% increase from last year. The figure slightly exceeded analysts' expectations of NT$1.264 trillion, according to an LSEG SmartEstimate drawn from 20 analysts, as per Reuters. TSMC is Asia's most valuable publicly listed company with a market capitalisation of $1.955 trillion.
Market influence
Revenue surge on back of AI applications demand
The record revenue comes on the back of rising demand for artificial intelligence applications.
TSMC, a key supplier to tech giants like NVIDIA and Apple, had predicted a second-quarter revenue between $39 billion and $40.2 billion during its last earnings call in April.
These updated revenue figures were disclosed in a brief statement. The company will report its full second-quarter earnings on Thursday, alongside an updated outlook and strategic plans for the remainder of the year.
Revenue breakdown
TSMC's revenue for June alone surges by 67.9% (YoY)
For June alone, TSMC's revenue surged by 67.9% year-on-year to NT$442.68 billion, a 6.2% increase from the previous month.
The company didn't provide any details or forward guidance in its brief revenue statement but is expected to report a 58.8% on-year rise in second-quarter net profit, according to an LSEG SmartEstimate.
TSMC's Taipei-listed shares closed up 1% on Monday while the broader market remained flat.