TSMC is due to release its second-quarter results this week, but industry analysts polled by Reuters are already providing their own forecasts for the company’s key performance indicators for the period ahead of this event. According to them, TSMC’s second-quarter revenue should have declined 14% year over year and its net income should have declined as much as 27%.
Estimated ReutersTSMC’s revenue was $15.53 billion in the second quarter, roughly in line with the company’s guidance provided in mid-April. A year earlier, TSMC’s quarterly revenue reached $18.16 billion, but then the aftermath of the pandemic, which boosted demand for semiconductor components, provided a high basis for comparison. Under normal conditions, the second quarter is a quiet time for the semiconductor industry, and demand picks up closer to the third quarter when preparations for new products for fall debut begin.
According to analysts polled by Reuters, TSMC’s third-quarter earnings growth this year will be helped not only by preparations for the announcement of a new generation of Apple iPhone smartphones, but also by strong demand for components for artificial intelligence systems. The Taiwanese manufacturer’s activities related to the development of the electric vehicle market will be less affected, since Chinese suppliers mainly work for this segment.
TSMC’s net income is likely to fall 27% to $5.58 billion in the second quarter, analysts say. This change is also driven by the high basis of comparison that market conditions created a year ago. Shares of TSMC are up 30% year-to-date as many investors see the company as one of the beneficiaries of the boom in artificial intelligence systems, for which it can manufacture components.