Chip giant Taiwan Semiconductor (TSM) or TSMC reported strong revenue performance in September and year-to-date, reflecting the surging demand for artificial intelligence (AI) chips. It should be noted that the company is set to release its full Q3 earnings report on October 17. Investors are eagerly awaiting to see if TSM’s profit margins have improved in line with the revenue growth.
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The company’s revenue reached NT$251.87 billion in September, marking 39% year-over-year growth. Further, the company’s revenue in the first nine months of 2024 increased by 32% to NT$2,025.85 billion.
Additionally, for the July-to-September quarter, TSM’s sales totaled NT$759.7 billion. This surpassed the company’s forecasted range of $22.4 billion to $23.2 billion for Q3 revenue. This strong performance reflects the robust demand for TSMC’s advanced chip manufacturing capabilities.
TSM Capitalizes on AI Boom
TSMC, a key supplier of advanced semiconductors to tech giants like Apple (AAPL) and Nvidia (NVDA), is reaping benefits from the AI boom. The growing adoption of AI-powered solutions across various sectors, including data centers, autonomous vehicles, and edge computing, has fueled demand for its high-performance chips.
Additionally, TSMC’s expertise in producing cutting-edge chips with advanced process technologies solidifies its position as a preferred supplier for companies developing AI applications.
Is TSM a Buy, Sell, or Hold?
Turning to Wall Street, TSM has a Strong Buy consensus rating based on five Buys assigned in the last three months. At $205, the average TSMC price target implies 10.19% upside potential. Shares of the company have gained more than 80% year-to-date.
