The post Taiwan’s TSMC projected to hit $7.25B in Q2 profits amid AI boom appeared on BitcoinEthereumNews.com.

While Nvidia (NASDAQ: NVDA) and other American tech giants have grabbed all the headlines as their revenue and market cap hit record highs, one of the companies at the heart of the artificial intelligence (AI) boom is riding the AI wave, too. Taiwanese chipmaker TSMC (NASDAQ: TSM) is expected to announce a 30% surge in net profits later this week. The Taiwan Semiconductor Manufacturing Co. (TSMC) is expected to announce T$673.51 billion ($20.67 billion) in revenue for the April-June period, based on its monthly revenue data for the three months. This represents 32% growth year-on-year, up from the $15.68 billion reported in a similar period last year. It also beats the analysts’ estimate of $20.06 billion. The company is predicted to announce growth in net profits to hit T$236.1 billion ($7.25 billion). This will represent a 29.9% increase from the $5.55 billion recorded last year. TSMC will also provide its outlook for the next quarter and the rest of the year. Li Fang-kuo, who chairs Florida-based President Capital Management, told Reuters that he expects the Q3 outlook “for all of their products to be very good.” TSMC took a hit after demand for chips waned as pandemic restrictions eased. However, the meteoric rise of AI has revived the company’s prospects, with demand from its three largest clients—Apple (NASDAQ: AAPL), Nvidia, and AMD (NASDAQ: AMD)—spiking in the last two years. A week ago, the company’s American Depositary Receipts (ADR) shares on the New York Stock Exchange hit $1 trillion for the first time. However, its share price on the Taiwan Stock Exchange places the company’s market cap at around $825 billion. The AI revolution has pushed the valuations of industry leaders to new heights. Nvidia briefly became the world’s most valuable company, surpassing $3 trillion, but Apple has since reclaimed the…

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Filed under: News - @ July 17, 2024 4:24 pm