Sales in April rose 17.5% to NT$410.7 billion ($13.1 billion), their smallest rise in about six months. While the rise reflects just 30 days of business and its revenue can fluctuate month-to-month, analysts on average expect the company’s June-quarter revenue to grow almost twice as fast, or at about 35%.
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Taiwan’s largest company has become an essential player in the global AI industry by making cutting-edge semiconductors for the likes of Nvidia Corp. and Advanced Micro Devices Inc. That’s as Alphabet Inc., Amazon.com Inc., Meta Platforms Inc. and Microsoft Corp. said they are setting aside $725 billion for AI this year, significantly more than previously anticipated.
The company, however, is exposed to a plateauing smartphone and consumer electronics market, where soaring memory chip costs are forcing brands to hike prices. Economic uncertainty is also dampening consumer demand in many parts of the world.
TSMC has remained bullish on global AI chip demand. In April, the company raised its full-year sales guidance and said its own capital spending should trend toward the upper end of an existing forecast range of as much as $56 billion, conveying confidence in the year’s economic outlook.
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