Strong AI Chip Demand Propels Key Apple, Nvidia Supplier Past Q1 Expectations
Chipmaking giant Taiwan Semiconductor Manufacturing Company (NYSE:TSM) on Thursday reported first-quarter results that beat market expectations, thanks to strong demand from companies involved in artificial intelligence.
What Happened:
- TSMC’s revenue rose 16.5% to NT$592.64 billion ($18.87 billion), exceeding the consensus estimate of $18.40 billion.
- Net income jumped 8.9% to NT$225.49 billion ($6.97 billion), exceeding the expected NT$213.59 billion.
- Diluted earnings per share (EPS) came at $1.38 compared to expectations of $1.32.
However, TSMC experienced a slight decline from the fourth quarter of 2023, with revenue and net income decreasing by 5.3% and 5.5%, respectively.
The company reported a gross margin of 53.1%, an operating margin of 42.0%, and a net profit margin of 38.0%.
What Drove The Beat?
Advanced technologies, including 7-nanometer processes and more advanced ones, accounted for 65% of TSMC’s total revenue. Within this, 3-nanometer technology comprised 9%, 5-nanometer contributed 37%, and 7-nanometer made up 19%.
Apple’s Dominating Role:
Apple Inc. has reportedly secured most of TSMC’s initial 2-nanometer production capacity, likely to …
Full story available on Benzinga.com