TSMC’s Second Quarter Results May Fuel Its $420 Billion Rally as AI Demand Soars
What is TSMC's expected second-quarter net income growth?
TSMC is expected to report a 29% increase in second-quarter net income, according to the median estimate of analysts surveyed by Bloomberg. This growth is driven by strong demand for artificial intelligence (AI) chips, with TSMC being a major supplier for companies like Nvidia and Apple6.
What are the expected gross profit margins for TSMC next year?
Analysts expect TSMC's gross profit margin to jump to 58% next year, higher than consensus estimates1. This expectation is due to a pickup in demand for high-end smartphones, product upgrades in high-performance computing, and a possible price hike for more advanced semiconductors.
How might TSMC adjust its full-year sales guidance?
TSMC may adjust its full-year sales guidance by raising it, as analysts from JPMorgan Chase & Co. to Morgan Stanley expect. This expectation is fueled by a 29% increase in second-quarter net income and strong AI-related growth, with TSMC becoming a favorite AI-bet for investors. The company's unique cutting-edge technology gives it bargaining power to raise prices for advanced chips as demand grows.