Taiwan Semiconductor Manufacturing Co. has raised its revenue growth projections for 2024 following better-than-expected quarterly results. The company now anticipates sales to increase by more than the previously estimated mid-20%. This upgrade reflects TSMC’s confidence in the continuous growth of global AI spending.
The chipmaker, known for supplying Apple Inc. and Nvidia Corp., is forecasting revenue of up to $23.2 billion for the current quarter, surpassing analysts’ expectations. Additionally, TSMC has adjusted its capital spending forecast to a range of $30 billion to $32 billion, showing its commitment to expanding capacity.
TSMC’s optimism in AI spending remains strong despite escalating US-Chinese trade tensions. The company’s CEO, C.C. Wei, emphasized the rising demand for AI services, stating that supply constraints are expected to persist until 2025.
Moreover, TSMC reported a 36% increase in June-quarter profit, with high-performance computing, particularly AI, accounting for over half of its revenue. The company’s success in the AI sector has propelled its market value, with shares more than doubling since 2022.
Overall, TSMC’s positive outlook reflects the ongoing growth in AI technology and its strategic position in meeting market demands.
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