Key Points
- TSMC reports third-quarter revenue of T$759.69 billion ($23.62 billion), surpassing market expectations.
- Year-on-year revenue growth stands at 36.5%, driven by AI-related demand.
- TSMC’s revenue for September alone surged 39.6% year-on-year.
- The company’s stock has risen 72% in 2024, outperforming the broader market.
Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, reported third-quarter revenue that significantly exceeded both market forecasts and the company’s estimates, benefiting from strong demand for artificial intelligence (AI) technologies. TSMC’s revenue for the July-September period reached T$759.69 billion (approximately $23.62 billion), beating analysts’ projections of T$750.36 billion ($23.33 billion), according to LSEG SmartEstimate, which gathered data from 23 analysts.
It represents an impressive year-on-year growth of 36.5%, compared to $17.3 billion in the same period last year. However, it is essential to note that TSMC provides monthly revenue figures in Taiwan dollars and quarterly earnings guidance in U.S. dollars. The third-quarter revenue exceeded TSMC’s July forecast, where the company projected earnings between $22.4 billion and $23.2 billion.
TSMC, which counts tech giants like Apple and Nvidia among its clients, has been at the forefront of AI development. While the chipmaker faced a slowdown in demand as pandemic-induced tech consumption tapered off, the rapid rise of AI applications has helped stabilize and boost its revenue streams. The increased need for advanced chips that power AI technologies has provided a strong tailwind for the company, positioning it to remain a key player in the global tech landscape.
For September alone, TSMC reported a 39.6% year-on-year revenue surge to T$251.87 billion, showcasing the company’s strong momentum heading into the end of the year. Although TSMC did not provide specific details in its brief revenue statement, the company is expected to offer a comprehensive update, including its outlook, during its full third-quarter earnings report on October 17.
The positive results have significantly impacted TSMC’s stock performance. Shares of TSMC, listed on the Taipei Stock Exchange, have risen by 72% so far in 2024, substantially outpacing the broader market index (.TWII), which has seen a 26% increase over the same period.
TSMC’s continued success highlights its crucial role in driving innovation within the semiconductor industry, especially as the global economy increasingly pivots towards AI and data-driven technologies. Analysts will closely watch the company’s full earnings report to gain further insights into its growth trajectory.