TSMC stock rises on increased annual revenue growth forecast

Shares of Taiwan Semiconductor Manufacturing Company (TSM) are rising on Thursday morning after the company forecasted a 10% revenue growth in the global semiconductor industry for the year. The company also estimated sales in its current second quarter could rise as much as 30% due to demand for semiconductors used in AI.

Yahoo Finance anchors Brad Smith and Seana Smith break down the latest developments for Taiwan Semiconductor and what it could mean for the company moving forward.

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This post was written by Nicholas Jacobino

Video transcript

Taiwan Semiconductor now forecasting revenue growth of 10% in the global semiconductor industry for the year.

That's excluding memory chips.

Now, the company's senior vice president calling this a golden age of opportunity with artificial intelligence.

And the difference here is a slight, slight tweak in the language, but it is significant because their previous guidance had said that the growth would be around 10%.

Now they feel a bit more confident that we are going to see revenue growth of 10% here for the industry.

So it was a subtle change but it was a positive adjustment here in terms of that outlook and we're seeing that reflected in a number of these chip names, obviously the sector also getting a boost and the heels of the blowout report here that we got from NVIDIA.

But again, a similar type of story when we're talking about chip demand and clearly we're seeing more upside movement here for these players when you take a look at a number of those competitors as well.

Yeah, I mean this comes after the company had already put out a a revenue report earlier in the month of May as well.

Here talking about revenue from for January through April as well here that increased by about 26.2% compared to the same period in 2023.

So continuing to ride some momentum here for TS MC, for sure, it's a larger kind of question of when you see more fabrication processes for for wafers come online, how much that does impact them?

But that's still years out from now.

I mean, we're talking about plants that are literally just getting ground broken on as of this juncture, I'm looking at you intel but particularly going forward from here.

Uh TS MC as at least as of right now, we were taking a look at shares a moment ago.

Uh shares reacting to this 10% annual revenue growth here.