TSMC Q2 Earning Beat Estimate, Let's see the financial highlights

Thursday Pre-Market, world's dedicated semiconductor foundry TSMC reports strong Q2 financial results, both Revenue and Net Income Beat Est.

TSMC Earnings Call Summary:

TSMC's products are supported by leading-edge 3-nanometer and 5-nanometer technologies, with strong orders from major customers like Nvidia.

TSMC executives have clearly stated that demand significantly exceeds supply, especially in AI accelerators and advanced packaging such as CoWoS. Tight supply is expected to continue until 2025, possibly easing by 2026.

TSMC has adjusted its capital budget for 2024 to be between $30 billion and $32 billion, reflecting positive expectations for future market demand. Company executives believe achieving a long-term gross margin target of 53% or higher is feasible.

TSMC emphasizes its leading technological position and responsiveness to customer demand. The company demonstrates its value through strategic pricing strategies and maintains close cooperation with customers and suppliers to ensure sustainable profit growth. TSMC is also actively investing in advanced packaging and specialty technologies to support customer growth.

Revenue for the third quarter is expected to be between $22.4 billion and $23.2 billion, up 9.5% quarter-over-quarter and 32% year-over-year. Gross margin is expected to be between 53.5% and 55.5%, with operating margin between 42.5% and 44.5%.