Amid the ever-evolving landscape of the semiconductor industry, key Apple and Nvidia supplier, Taiwan Semiconductor Manufacturing Company (NYSE:TSM), has released its first-quarter financial results for 2024, showcasing substantial growth compared to the previous year.
What Happened: On Thursday, TSMC unveiled its financial achievements for the first quarter, highlighting a notable increase in year-over-year figures. The company’s consolidated revenue reached NT$592.64 billion ($18.87 billion) with net income hitting NT$225.49 billion ($6.97 billion).
The leading semiconductor manufacturer saw a 16.5% surge in revenue over the same period last year. Net income and diluted earnings per share (EPS) both experienced an 8.9% rise. Despite these gains, TSMC experienced a slight decline from the fourth quarter of 2023, with revenue and net income decreasing by 5.3% and 5.5%, respectively.
See Also: Crypto Markets Tumble Following Iran’s Drone Attack Against Israel, Investor Warns Of Continued Selloff
The company reported a gross margin of 53.1%, an operating margin of 42.0%, and a net profit margin of 38.0%.
Advanced technologies, including 7-nanometer processes and more sophisticated ones, accounted for 65% of TSMC’s total wafer revenue. In detail, 3-nanometer technology comprised 9%, 5-nanometer contributed 37%, and 7-nanometer made up 19% of the wafer revenue.
Why It Matters: TSMC’s robust financial performance is a bellwether for the semiconductor sector, reflecting broader industry dynamics. The company’s pivotal role as a supplier to major tech corporations worldwide makes its growth in advanced technologies revenue particularly noteworthy. This trend highlights the escalating demand for high-performance chips, which are crucial in various sectors, including consumer electronics, automotive, and industrial applications. TSMC’s results are a key metric for investors and analysts to assess the industry’s future direction and any impending changes in the supply chain.
Speculation about TSMC’s performance was rife, following a disappointing earnings report from rival ASML Holding N.V., which led to a dip in TSMC’s shares. Moreover, options trading activity indicated a bullish sentiment among financial giants towards TSMC, with a significant number of unusual trades being placed just before the earnings release.
Read Next: The Court Case That Could Change The Cannabis Industry Forever And How It Affects Rescheduling
Image via Shutterstock
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
Comments