Taiwanese chip giant TSMC, the world’s largest contract chipmaker, posted a stronger-than-expected nine per cent rise in first-quarter net profit on Thursday, as reported by Reuters.
This surge came amid a wave of demand for semiconductors used in artificial intelligence (AI) applications.
The company’s net profit for January-March rose to T$225.5 billion ($6.98 billion), exceeding analyst expectations of T$218.1 billion.
Additionally, TSMC’s first-quarter revenue of $18.87 billion surpassed its own forecast of $18 billion to $18.8 billion.
TSMC, a key supplier to Apple and Nvidia, has benefited from the growing adoption of AI technology.
This trend helped offset a slowdown in pandemic-driven electronics demand and propelled the company’s stock towards record highs.
TSMC stock flat despite record highs
While the results were impressive, TSMC shares remained flat on Thursday ahead of an earnings call scheduled later in the day. This came despite a 0.4 per cent gain for the broader Taiwanese stock market.
During the call, investors anticipate updates on the company’s outlook for the current quarter and the rest of the year.
This includes planned capital expenditure, which TSMC previously estimated to be between $28 billion and $32 billion for 2024, compared to $30.45 billion in 2023.
(1 United States dollar = 32.3190 Taiwan dollars)
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