Taiwan Semiconductor Manufacturing (TSMC), the world's largest contract chipmaker, reported better-than-expected sales in May due to increased production of artificial intelligence chips and a recovery in PC demand, leading to a rise in TSM stock.
TSMC announced a 30.1% increase in May sales year-over-year in local currency, though sales dipped 2.7% from April. Year-to-date, TSMC's sales have grown 27%.
Bernstein analyst Mark Li noted that TSMC's second-quarter sales are surpassing expectations. "If June follows the average seasonality of the past eight years, Q2 2024 revenue would be 12% above both the guidance midpoint and consensus," said Li, who rates TSM stock as outperform.
FactSet analysts forecast TSMC will earn $1.37 per share, up 21% year-over-year, on sales of $19.95 billion, up 29%, in the second quarter.
Following the sales report, TSM stock rose 0.4% to 162.70 in premarket trading. TSM stock recently broke out of a double-bottom base at ...
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