Taiwan Semiconductor Manufacturing Company (NYSE: TSM) has reported better-than-expected sales due to the soaring demand for artificial intelligence applications. TSMC, a leading chipmaking company, has experienced a boom in its chipmaking capacity, catering to the needs of the thriving AI industry.
According to calculations by Bloomberg, TSMC’s second-quarter revenue reached NT$480.8 billion ($15.3 billion). Although this represents a 10% decline compared to the previous year, it outperformed the market’s fears and surpassed the average analyst estimate of NT$476.2 billion. Notably, sales in June alone amounted to NT$156.4 billion.
TSMC holds a crucial role as the primary contract manufacturer for Nvidia Corp.’s AI accelerator chips. These chips are widely acknowledged as the top hardware choice for training large data models, including the fundamental technology behind OpenAI’s ChatGPT.
Prior to the release of the monthly sales figure, TSMC’s shares remained steady on Monday. However, Goldman Sachs analysts had earlier raised their target price for the company to NT$700. Despite TSMC’s caution that revenue for 2023 may experience a low- to mid-single-digit decline in US dollar terms, the stock has already soared over 25% since the beginning of the year.
Goldman Sachs analysts Bruce Lu and Evelyn Yu stated, “We view TSMC as the key AI enabler among our Taiwan semi-coverage thanks to its leadership stance in leading-edge nodes and advanced packaging technology.”
Data compiled by Bloomberg reveals that the company currently has 37 buy recommendations, one hold, and no sells.