Taiwan Semiconductor Manufacturing Co. (TSMC) expects to see revenue growth of up to 30% in the current quarter, driven by a surge in demand for artificial intelligence (AI) technology. The company’s positive outlook comes after it reported its first profit growth of the year, with strong demand for AI technology driving growth at the world’s largest contract chip maker.
TSMC expects revenue to range between $19.6 billion and $20.4 billion in the June quarter, beating analysts’ estimates. This growth is seen as a result of increasing demand for chips used in AI applications, which is starting to offset the effects of the slowdown in the smartphone market, especially in China.
The company has seen significant growth in its market value since the end of 2022, as investors bet on its position as a key player in the boom in artificial intelligence development. TSMC has budgeted for capital expenditures of $28 billion to $32 billion for 2024 and posted net income growth of 9% in the March quarter, beating expectations.
Despite this positive outlook, there is constant uncertainty in the semiconductor market due to global economic instability. TSMC expects revenue growth of at least 20% for the full year, with chips focused on artificial intelligence playing an increasingly important role. However, some investors warn that the current level of demand for AI chips may not be sustainable in the long term, while geopolitical tensions, particularly in the Taiwan Strait, remain a concern.
Overall, TSMC is capitalizing on the AI trend and positioning itself as a major player in the semiconductor industry with strong revenue growth and a positive outlook for