TAIPEI (Reuters) -Taiwan Semiconductor Manufacturing Co, the dominant producer of superior chips utilized in synthetic intelligence purposes, is predicted to report a 5% rise in first-quarter revenue on Thursday due to robust demand. The world’s largest contract chipmaker, whose prospects embrace Apple (NASDAQ:) and Nvidia (NASDAQ:), has benefited from a surge in direction of AI that has helped it climate the petering out of pandemic-led electronics demand and pushed TSMC’s inventory to a document excessive. TSMC is ready to report a web revenue of T$218.1 billion ($6.74 billion) for the quarter ended March 31, based on an LSEG SmartEstimate drawn from 22 analysts. SmartEstimates give higher weighting to forecasts from analysts who’re extra persistently correct. That compares to the first-quarter web revenue of T$206.9 billion final yr. TSMC final week reported a 16.5% rise in first-quarter income, beating market expectations and on the excessive finish of the corporate’s personal steerage.
The corporate will present updates on its outlook for the present quarter and the remainder of the yr on an earnings name at 0600 GMT on Thursday, together with capital expenditure which it has beforehand guided as being within the vary of $28 billion to $32 billion this yr, in contrast with final yr’s $30.45 billion.
On Wednesday, ASML (AS:), the biggest provider of kit to pc chip makers like TSMC, reported weaker than anticipated first-quarter new bookings, although gross sales to China held up regardless of U.S.-led restrictions.
Firm executives may additionally discuss TSMC’s plans within the U.S. state of Arizona, the place it has introduced it can construct a 3rd manufacturing facility after successful $6.6 billion in U.S. subsidies.
TSMC leads the world in superior chip manufacturing, utilized in every thing from smartphones and tablets to fighter jets, although opponents like Intel (NASDAQ:) and Samsung (KS:) are attempting to problem the corporate’s dominance. Intel this month disclosed deepening working losses for its foundry enterprise, a blow to the chipmaker because it tries to regain a expertise lead it misplaced in recent times to TSMC. The AI increase has helped drive up the worth of shares in Asia’s most dear firm, with TSMC’s Taipei-listed inventory having surged greater than 30% thus far this yr to a historic excessive, in contrast with a 12% achieve for the broader market.
($1 = 32.3700 Taiwan {dollars})
