Taiwan Semiconductor Manufacturing Co. (TSMC), the leading global contract chip manufacturer, announced on Thursday that its revenue for the first quarter surged by 42 per cent, marginally surpassing market expectations, driven by the growth in artificial intelligence. TSMC announced in a short statement that its revenue from January to March was T$839.3 billion ($25.6 billion), slightly above the LSEG SmartEstimate of T$835.7 billion, which is based on 19 analysts and consistent with the company's guidance of $25 billion to $25.8 billion.
It stated in February that revenue was expected to be at the lower end of that range because of a $161 million effect from a January earthquake in Taiwan.
TSMC will announce complete earnings for the first quarter on April 17, along with projections for the ongoing quarter and the entire year. The firm, with clients such as Apple (AAPL.O) and Nvidia (NVDA.O), has significantly benefited from developments in AI, which have more than balanced the decline in pandemic-driven demand for chips utilised in consumer electronics like tablets. Similar to other firms, TSMC's stock has dropped significantly since U.S. President Donald Trump revealed comprehensive import tariffs last week, although semiconductors have not yet been affected.
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Trump's declaration of a tariff halt resulted in a 9.9% increase in its Taipei-listed share on Thursday, bringing this year's declines to 19.7 per cent, which aligns with the overall index's 17.5 per cent fall. Taiwan's Foxconn (2317.TW), the largest contract electronics manufacturer globally and a producer of AI servers for Nvidia, has additionally announced impressive sales, recording its highest revenue ever in the first quarter.
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