Taiwan Semi Posts 33% Revenue Growth, Analysts Expect Q3 to Beat Guidance

Taiwan Semiconductor Manufacturing (NYSE:TSM) reported a robust 33% year-over-year revenue increase for August, though sales dipped 2.4% from July. The company’s consolidated revenue for August 2024 was approximately NT$250.87 billion, down from NT$256.95 billion in July but significantly higher than NT$188.69 billion in August 2023. Year-to-date, TSMC’s revenue totaled NT$1,773.97 billion, reflecting a 30.8% rise compared to the same period in 2023.

Following the report, JPMorgan analysts expressed optimism, noting that the strong August sales signal a potential third-quarter earnings beat. They anticipate steady or slightly improved September revenues, driven by increasing demand for iPhone processors and strong performance in TSMC's N3 and N5 chip segments. JPMorgan believes TSMC’s Q3 revenue could exceed the high end of the company’s guidance, and expects Street estimates for TSM shares to rise over the next 12 months.

Bernstein analysts also noted that TSMC's monthly sales are tracking ahead of consensus expectations for the third quarter, emphasizing the positive momentum. The firm projects TSMC’s revenue to grow by 24% year-over-year in 2025.