Taiwan Semiconductor Eyes $23B in Q3 Revenue as AI Demand Soars

Benzinga · 10/14 18:23

Taiwan Semiconductor Manufacturing Co (NYSE:TSM) will likely report a third-quarter topline of $23.096 billion (versus $17.280 billion a year ago) and adjusted EPS of $1.80 on Thursday, according to analyst consensus estimates.

The 34% revenue growth comes from the continued artificial intelligence frenzy and as countries remain engaged in consolidating their semiconductor base to reduce dependence on Asian countries like China. TSMC has guided for revenue of $22.4 billion-$23.2 billion.

Last week, the company reported September topline growth of 39.6% to 251.87 billion Taiwanese dollars ($7.82 billion).

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Taiwan Semiconductor stock is up over 109% in the last 12 months. Global funds injected $29.5 billion of capital into the Taiwan Stock Exchange between January and September on a net basis despite selling $16.9 billion of shares, implying ample cash for investment in the stocks, Bloomberg reports.

TSMC is a prime Nvidia Corp (NASDAQ:NVDA) and Apple Inc (NASDAQ:AAPL) chip supplier, and it remains invested in its geographical diversification, including the U.S., Japan, and Germany, signaling continued demand for its AI chips.

Taiwan Semiconductor has already earmarked over $65 billion for three plants in Arizona, U.S. The contract chipmaker is eying more AI chip plants in Europe, Bloomberg cites from Taiwan’s National Science and Technology Council Minister Wu Cheng-wen interview.

Wu told Bloomberg that the AI market, including chips for Nvidia and Advanced Micro Devices Inc (NASDAQ:AMD), will be the most essential segment. He also hinted at the possible evaluation of expansion strategies in Europe.

Price Action: TSM stock is up 0.87% at $192.47 at the last check on Monday.

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