Taiwan Semiconductor Manufacturing Co’s (NYSE:TSM) topline growth was 33% in August 2024. The contract chipmaker’s sales reached NT$250.9 billion ($7.8 billion) in August 2024, implying a 2.4% sequential decline.
The year-on-year growth signaled optimism over smartphone market recovery and continued demand for Nvidia Corp’s (NASDAQ:NVDA) AI chips, Bloomberg reports.
Also Read: Semiconductor ETFs Take A Beating, Dragged Lower By Nvidia, AMD, and Broadcom Stocks
Wall Street is betting on a bounce-back in demand for mobile devices backed by Apple’s adoption of Wi-Fi 7 on the iPhone 16 and 16 Pro.
According to the Bloomberg report, analysts expect Taiwan Semiconductor’s revenue to grow 37% for the third quarter. Recently, Taiwan Semiconductor and Samsung Electronics (OTC:SSNLF) officials expressed optimism for the AI industry.
Taiwan Semiconductor now earns more than 50% of its revenue from high-performance computing, a business segment driven by AI demand. The Nvidia supplier is also the leading manufacturer of the Apple Inc (NASDAQ:AAPL) iPhone’s central processor.
Production yield at the Arizona facility is reportedly at par with that at its Taiwan facilities, signaling further optimism for the industry.
Taiwan Semiconductor stock has increased 82% in the last 12 months. Investors can gain exposure to the stock through the SPDR S&P Emerging Asia Pacific ETF (NYSE:GMF) and the ProShares Nanotechnology ETF (NYSE:TINY).
Price Action: TSM stock traded lower by 0.80% to $161.52 premarket at the last check on Tuesday.
Also Read:
Image via Shutterstock
“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article Taiwan Semiconductor’s Strong August Sales Hint at Big Gains Ahead, AI and iPhone Demand Fuel Optimism originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
