profit above expectations and +16.5% on turnover From Investing.com

Investing.com – Taiwan Semiconductor Manufacturing (NYSE:) today announced consolidated revenue of NT$592.64 billion, net profit of NT$225.49 billion and diluted earnings per share of NT$8.70 ( $1.38 per ADR unit) for the first quarter ended March 31, 2024.

The net profit figure exceeded analysts’ estimates of profits of 218.1 billion Taiwan dollars. Compared to the prior year, first-quarter revenue increased 16.5%, while net income and diluted earnings per share both increased 8.9%.

However, compared to Q4 2023, Q1 results saw a 5.3% decline in revenue and a 5.5% decline in net income.

In dollar terms, first-quarter revenue was $18.87 billion, an increase of 12.9% from a year earlier and a decline of 3.8% from the previous quarter.

Gross margin for the quarter was 53.1%, operating margin was 42.0%, and net profit margin was 38%.

“Our first quarter business was impacted by smartphone seasonality, partially offset by continued HPC-related demand,” commented Wendell Huang, chief financial officer of TSMC. “In the second quarter of 2024, we expect our business to be supported by strong demand for our 3nm and 5nm technologies, partially offset by continued smartphone seasonality.”

Based on the current business outlook, management expects that overall in the second quarter of 2024 the company will achieve revenue of between $19.6 billion and $20.4 billion, with a gross profit margin of between 51% and 53% and an operating profit margin of between 40% and 42%.

The positive earnings were achieved thanks to the growing demand for chips from the artificial intelligence industry. TSMC, being the world’s largest semiconductor manufacturer, is considered a benchmark for the entire chip market. Yesterday the sector had to suffer the fall of the Dutch company ASML (AS:) after new orders had disappointed analysts’ expectations.

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