TSMC’s Second-Quarter Profit Increased by 30% due to a Surge in AI Chip Demand.

(VOR News) – Taiwan Semiconductor Manufacturing Company (TSMC), which is the primary manufacturer of cutting-edge chips that are utilized in applications related to artificial intelligence, is anticipated to post a thirty percent increase in its profit for the second quarter on Thursday.

This is due to the surge in demand that has occurred in recent times.

As a consequence of the growing demand for artificial intelligence, the entire stock of the Taiwanese market as well as the stock of TSMC have both reached new heights that have never been seen before.

This new invention has been beneficial to a number of corporations, including Apple and Nvidia, among others.

Due to TSMC’s status as the largest contract chipmaker in the world.

Just the week before last, the market value of American Depositary Receipts achieved a new all-time high of one trillion dollars. This is more than any previous record.

Twenty distinct experts’ estimations were combined to create an LSEG Smart Estimate. This was accomplished by working together.

According to this LSEG SmartEstimate, Texas Semiconductor Manufacturing Corporation (TSMC) is expected to generate a net profit of T$236.1 billion ($7.25 billion) for the quarter that ended on June 30.

SmartEstimates lends more weight to the estimations that are offered by analysts that frequently deliver more accurate projections when it comes to creating predictions. This is because SmartEstimates strives to provide more accurate projections.

When contrasted with the net profit of 181.8 billion Taiwan dollars that was recorded during the second quarter of 2023, this prediction stands in stark contrast.

As of the previous week, TSMC revealed that it had boosted its revenue for the second quarter, which was far higher than the predictions that were currently being offered by the market.

The Chairman of President Capital Management Company, Li Fang-kuo, made the following statement: “I anticipate that the business outlook for all of their products during the third quarter will be very positive at this point in time.”

When TSMC has its quarterly results call, which is scheduled to take place on Thursday at 6:00 GMT, the firm will provide an update on its projections for both the current quarter and the entire year moving forward.

This call is scheduled to take place. One of the things that will be covered under this section is the capital expenses that the company incurred as a result of its attempts to improve output. These charges fell under the category of “capital expenses.”

A total of sixty-five billion dollars will be allocated to three different locations in the state of Arizona, which is located in the United States of America, as part of TSMC’s commitment to the establishment of new facilities overseas.

As a result of this, the company has declared that Taiwan will continue to serve as the location of the majority of its production operations.

Recently, TSMC held an earnings conference in which.

Which took place in April, the company made the news that between 70 and 80 percent of the capital investment for this year will be allocated to advanced technologies.

During the course of this year, the business has reiterated that it intends to devote between $28 and $32 billion to various capital projects. This number is comparable to the thirty-four and a half billion dollars that was allotted to capital projects during the preceding accounting year.

The Chairman of the KGI Securities Investment Advisory Company, Chu Yen-min, made a speech in which he proposed that “TSMC could enhance their expenditures on capital expenditures.”

“There are many positive factors which will help their stock price and support the broader market.”

The rise in the price of shares in the company that is regarded as the most valuable among those in Asia can be attributed to the development of artificial intelligence, which is responsible for the rise in price.

The Taipei-listed stock of TSMC has climbed by 75% this year, hitting heights that have never been seen before. This is in contrast to the entire market, which has increased by 33% over the course of this year.

TSMC is frequently referred to as the “sacred mountain protecting the country” due to the enormous role it plays in Taiwan’s economy, which is primarily dependent on exports.

This is despite the fact that Intel and Samsung pose a challenge to TSMC’s dominance in the automotive industry.

A single dollar is equivalent to 32,548 Taiwan dollars. This is the worth of one dollar.

SOURCE: YFN

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