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ying Financial Information Investing.com – Before the U.S. stock market trading on Thursday, TSMC (NYSE:TSM), the world's largest contract chip manufacturer, predicted that its current quarterly revenue is expected to exceed expectations despite facing declines in smartphones and other uncertainties.
TSMC expects its sales to reach $9.1 billion to $9.2 billion as of September, while analysts' average estimate is $8.9 billion.
According to Morgan Stanley , orders for cryptocurrency mining equipment are expected to help TSMC's third-quarter sales, iPhone order growth at the end of the year and AMD's new chip cycle may also drive TSMC's revenue. Morgan Stanley recently raised the stock's target price by 9%.
Bloomberg intelligence analyst Charles Shum pointed out, "Section guidance shows that TSMC management is confident that demand will recover in the second half of the year, which may be driven by new orders from AMD. In addition, we expect gross profit margin to return to 50% by the fourth quarter."
For the second quarter, TSMC said net profit fell 7.6% to NT$66.765 billion (US$2.15 billion), higher than the market expectations of NT$65.92 billion. Revenue rose 3.3% to NT$241 billion in the quarter; while in US dollars, its revenue fell 1.4% year-on-year to US$7.75 billion. This still exceeds the $7.55 billion to $7.65 billion guidance given by TSMC. Analysts' average expectations are $7.6 billion.
As the world's largest chip foundry, TSMC is the barometer of the entire related industry. At the same time, investors will also look at Apple based on TSMC's performance, which accounts for about one-fifth of its revenue.
is affected by the stagnation of smartphone sales and the focus of Apple's main customer Apple began to shift from hardware to software. Coupled with other geo- uncertainties, TSMC's revenue fell by 4.5% in the first half of this year, the worst first-half performance since 2011.
-inch financial situation data showed that TSMC (TW: 2330) closed up 0.79% on Thursday at NT$254 in the Taiwan stock market.
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