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Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker and a major Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA) supplier, forecast on Wednesday second-quarter sales may rise as much as 30% as it rides a wave of demand for semiconductors used in artificial intelligence (AI) applications. Its first-quarter profit also beat estimates.
But it left its capital spending plans for this year unchanged at between $28 billion and $32 billion and reiterated it expected 2024 revenue to rise in the low- to mid-20% range in U.S. dollar terms.
It also saw a “more mild and gradual recovery” for the chip sector not including memory.
Analysts at J.P. Morgan noted in their list of “key negatives” from the earnings the slower recovery in logic semiconductor demand for 2024, now 10% growth compared with 10%- plus growth guided in January due to the gradual recovery in smartphones, computers, non-AI servers and a decline in auto demand.
The broader Taipei market was down more than 2.7% on Friday morning.
