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TSMC Outperforms Amid Rising AI Demand
$Taiwan Semiconductor (TSM.US)$reported superior than projected sales buoyed by a surge in demand for artificial intelligence applications.
Their second-quarter revenue stood at NT$480.8 billion ($15.3 billion), marking a 10% decrease year-on-year. However, the decline was not as severe as anticipated, outperforming an average analyst forecast of NT$476.2 billion. Meanwhile, the revenue for June was reported at NT$156.4 billion.
TSMC is a leading contract manufacturer for Nvidia Corp.'s AI accelerator chips, a preferred hardware choice for training expansive data models, including those that form the backbone of OpenAI's ChatGPT.
Prior to TSMC's recent sales report, the company's stock remained stable. Goldman Sachs analysts had revised their target price for TSMC to NT$700. Despite warnings of potential revenue reductions of low- to mid-single digits in US dollar terms for 2023, the company's shares have grown over 25% since the beginning of the year.
However, Bloomberg Intelligence suggests caution. Charles Shum, a BI analyst, Charles Shum, an analyst at Bloomberg Intelligence, pointed out that although TSMC is selling more than what was initially expected, there's a consistent problem - people aren't buying as many smartphones as expected. This situation is creating some difficulties for the otherwise booming AI chip orders.
So, what does this mean? Essentially, while TSMC is doing well with its AI chip sales, their overall performance is being dragged down by sluggish smartphone sales. The future of their business may depend heavily on whether the smartphone market picks up.
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104354783 : good
Andyyy : Optimistic about TSMC
MVmjjliWwL : bullish on TSM!
破茧成蝶 Andyyy : In the second half of the year, TSMC will focus on advanced packaging and 3-nm, and Outreach
破茧成蝶 MVmjjliWwL : TSMC announced the lowest decline in revenue for the full year of this year. Breaking the 14-year growth record, but there will still be a rebound in the third season
Andyyy 破茧成蝶 : thanks
104174932 : good job