Against the backdrop of surging demand for chips driven by the AI boom, TSMC's revenue growth in the first quarter of 2024 was the fastest in more than a year, indicating that the global chip market has now begun to recover from the sharp decline in 2023.
TSMC reported on Wednesday that sales in the first quarter rose 16.5% year-on-year to about NT$592.6 billion ($18.5 billion), exceeding expectations of NT$579.5 billion and the largest growth since 2022.
Among them, sales in March were 195.2 billion yuan, an increase of 7.5% month-on-month and a year-on-year increase of 34.3%.
TSMC's January-February revenue was NT$397.4 billion (US$12.6 billion), up 9.4%. Sales in January were NT$215.79 billion, up 7.9% year-on-year, and sales in February were NT$181.65 billion, up 11% year-on-year.
As the world's largest foundry chip manufacturer, TSMC, whose customer base includes well-known technology giants such as Apple and Nvidia, thanks to the vigorous development of artificial intelligence technology, TSMC has successfully survived the difficult period of reduced demand caused by the epidemic, and its stock price has also reached a record high, and TSMC's U.S. stock has risen by 40% since the beginning of the year.
This stellar performance further strengthens expectations for TSMC, which is widely expected to see solid growth for the world's most valuable chipmaker this year.
Previously, it was reported that TSMC will raise its capital expenditure in 2024 from the original estimate of $280~32 billion to $300~$34 billion, an increase of more than 7%, and is expected to increase revenue by at least 20% this year, thereby reversing the slight decline in 2023.
TSMC announced in January that its revenue in the field of artificial intelligence is growing rapidly at a rate of 50% year-on-year. In order to meet market demand, the company is actively building new factories in the United States, Japan, and Germany to supply data centers to Internet giants such as Amazon and Microsoft.
TSMC's market capitalization has more than doubled since its market capitalization trough in October 2022. Investors are betting on continued demand for the company's advanced AI chips for Nvidia and others, offsetting fears of a global smartphone recession, with TSMC scheduled to release its comprehensive earnings report on April 18.
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