TSMC's Q4 2024 earnings report

TSMC’s Q3 Profit Soars 54% to NT$325.3B on AI Demand from Apple, Nvidia; Raises Revenue Forecast

Oct 17, 2024, 06:12 AM

Taiwan Semiconductor Manufacturing Company (TSMC) reported a 54% year-on-year increase in its third-quarter net profit to NT$325.3 billion ($10.06 billion), surpassing market forecasts of around NT$300.2 billion. Earnings per share were NT$12.54 ($1.94 per American Depositary Receipt unit). Revenue for the quarter rose 39% to NT$759.7 billion ($23.5 billion), driven by strong demand for AI and smartphone chips, with wafer shipments totaling 3.338 million units. Gross margin improved to 57.8%, exceeding the upper end of the company's guidance, while operating margin reached 47.5%. Capital expenditures for the quarter were $6.4 billion. TSMC attributed the robust performance to "extremely robust AI-related demand" from major clients like Apple and Nvidia, with CEO C.C. Wei noting that "almost every AI innovator is working with TSMC" and that AI demand is "real" and "just the beginning." The company raised its full-year revenue growth forecast to "close to 30%" in US dollar terms, up from "slightly above mid 20%s," and provided fourth-quarter revenue guidance of $26.1 billion to $26.9 billion, above market expectations. TSMC also provided fourth-quarter gross margin guidance of 57% to 59% and operating margin guidance of 46.5% to 48.5%. The company adjusted its 2024 capital expenditure forecast to slightly higher than $30 billion.