Taiwan Semi Clocks Double-Digit Q1 Revenue Growth, Eyes Robust 2024 Amid AI Boom
$Taiwan Semiconductor Manufacturing(TSM)$
The figure was closer to the higher end of TSMC's previous expectation of $18 billion—$18.8 billion.
The key $NVIDIA Corp(NVDA)$
The outperformance fueled expectations that the key contract chipmaker will return to solid growth in 2024, battling the pandemic-induced smartphone and computer sales slump, Bloomberg reports.
The first half of the year is usually slower for Taiwanese tech firms due to corrections following the end-of-year holiday rush in major Western markets. Still, according to Reuters report, the AI trend served as a significant demand tailwind even during the lull season.
TSMC expects capital expenditures of $28 billion—$32 billion and revenue growth of at least 20% in 2024, compared to 2023's slight decline.
TSMC said in January that its AI revenue is growing at 50% annually. The company remained engaged in expanding its geographical footprint in the US, Japan, and Germany to tap $Amazon.com(AMZN)$
Asian rival Samsung Electronics Co's profit rebounded sharply in the first quarter.
Earlier this week, TSMC raised its total investment in the US to over 60% to $65 billion, backed by a $6.6 billion federal grant and $5 billion in loans to enable the production of the most advanced 2-nanometer chips. It also set Japan's 60% local procurement goal, implying significant global expansion efforts.
TSMC stock has gained over 63% in value in the last 12 months. Investors can gain exposure to the stock via the $VanEck Semiconductor ETF (SMH.US)$ and the $iShares Semiconductor ETF (SOXX.US)$.
Price Action: TSM shares traded higher by 1.02% at $146.89 premarket on the last check Wednesday.
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