TSMC Third Quarter Revenue Exceeds Forecasts

The revenue indicator of Taiwan Semiconductor Manufacturing Company at the end of the third quarter of this year showed a decrease, which turned out to be lower than the pace of this negatory dynamic initially predicted.

TSMC Third Quarter Revenue Exceeds Forecasts

Experts say that the revenue of the Taiwanese chip manufacturer turned out to be higher than expected due to the fact that the demand for the company’s products in the sphere of artificial intelligence is currently high, as a result of which the financial efficiency of the brand grew and has suffered moderately from falling sales of microcircuits for laptops and smartphones. The demand in the AI industry compensated for the consequences of the negative state of affairs in the markets of other devices.

TSMC is currently the main chip manufacturer for technology giants such as Apple and Nvidia. In the period from July to the end of September of this year, the revenue of the Taiwanese company amounted to 546.7 billion New Zealand dollars. This figure is 11% less than the financial result of the chip manufacturer for the same period last year. At the same time, experts predicted that TSMC’s revenue for the third quarter of 2023 would be 531.5 New Zealand dollars.

Data processing centers, the functioning of which is carried out through the use of artificial intelligence technologies, in a sense, by the very fact of their existence, provide demand for the products of one of the main customers of the Taiwanese manufacturer, which is Nvidia. There is also a growing demand for microcircuits of memory, which are applied in machine intelligence systems.

Currently, investors are looking for signs that the intense demand for AI chips, which has an increase in dynamics, overcomes supply constraints, which improves sales figures. If these trends are stable and do not raise doubts about the long-term viability of the corresponding vector, there will be a weakening of widespread concerns about the prolonged decline in the materials and devices sector for sphere machine intelligence.

TSMC is the main contract manufacturer of Nvidia artificial intelligence accelerator chips. These microcircuits are used in the process of training models of large amounts of data. One of these models is applied to the world’s most popular chatbot ChatGPT, which was developed by OpenAI specialists.

Bloomberg Intelligence analyst Charles Shum says that the high level of demand for advanced packaging services from the Taiwanese manufacturer may also be a factor in the growth of the company’s sales figures. He noted that this assumption is realistic even against the background of the continued functioning of the semiconductor sector with an excess stock. According to the analyst, a favorable exchange rate could contribute to an increase in profit margins.

Investors are focused on getting acquainted with TSMC’s forecasts on the prospects for activities in the near future, which are expected to be made public on October 19. This company is currently perceived in the financial and industrial environment as a leader in the technology sector. Also, in the conditions of modern realities, concerns are growing related to the slowdown in the growth of sales of products of technology giants, for example, Apple.

TSMC shares closed on Friday, October 6, in Taipei, demonstrating positive dynamics. The growth in the value of these securities was approximately 0.8%. Since the beginning of this year, the chip manufacturer’s share price has increased by more than 18%.

As we have reported earlier, TSMC and Arizona Authorities Discuss Advanced Chip Packaging Investment.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.