Taiwan Semiconductor Manufacturing Co. (TSMC) is projecting a revenue increase of up to 30% in the current quarter, driven by a surge in AI development that is fueling demand for the advanced chips it produces for companies like Nvidia Corp. This positive outlook comes after the company reported its first profit growth in a year, with strong demand for AI technology driving growth at the world’s largest contract chipmaker.
TSMC expects revenue to range between $19.6 billion and $20.4 billion in the June quarter, exceeding analyst estimates. The growth is seen as a result of increasing demand for chips used in artificial intelligence applications, which is starting to offset the effects of a slowdown in the smartphone market, particularly in China.
The company has seen a significant increase in market value since late 2022, as investors bet on the company’s position as a key player in the AI development boom. TSMC has set a capital expenditure budget of $28 billion to $32 billion for 2024 and recorded a 9% rise in net income for the March quarter, surpassing expectations.
Despite the positive outlook, there is ongoing uncertainty in the semiconductor market due to global economic volatility. TSMC expects revenue growth of at least 20% for the full year, with AI-focused chips playing an increasingly important role. However, some investors caution that the current level of AI chip demand may not be sustainable in the long term, while geopolitical tensions, particularly in the Taiwan Strait, remain a concern.
Overall, TSMC is capitalizing on
Hanna Andersson, a renowned brand in children’s clothing, has recently appointed Mike Frazzini as their…
Bunny Shaw, a former Tennessee soccer player, has just won three prestigious awards for her…
Recently, actress Scarlett Johansson expressed her shock at how similar one of the artificial intelligence…
New rules in Davos are tightening regulations on the construction of temporary structures during the…
Medivis, based in New York, NY, USA, has revolutionized surgical workflows with its SurgicalAR platform.…
Euro 2024 is just around the corner, and you can get ready for it by…