Taiwan Semiconductor Manufacturing, the world's largest contract chipmaker, on Wednesday easily beat expectations for sales in the month of June. TSM stock jumped on the news.
The chip foundry, better known as TSMC, reported the equivalent of $6.42 billion in June sales, vs. expectations for $5.73 billion. TSMC reports results in New Taiwan dollars.
TSMC's monthly sales rose 32.9% in local currency from June 2023. Production of chips for artificial intelligence applications boosted TSMC's sales in the period.
TSMC makes cutting-edge chips for AMD, Apple, Broadcom, Nvidia, Qualcomm and others. It is the top manufacturer of chips for AI applications in data centers as well as PCs and smartphones.
TSMC plans to report its second-quarter results on July 18. Analysts polled by FactSet had been expecting Taiwan Semi to earn $1.40 per U.S. share on sales of $20.14 billion in the June quarter. In the three months ended June 30, TSMC generated the equivalent of $20.83 billion in sales.
TSM Stock Is A Recent Breakout
Last week, Taiwan Semiconductor's U.S. shares jumped after Morgan Stanley predicted that TSMC will raise its full-year sales outlook with the upcoming earnings announcement.
Also, Mizuho Securities said it expects TSMC to raise prices by 5% to 8% for its advanced process nodes starting in the first quarter of 2025, given heightened demand.
TSM stock notched a record intraday high of 192.80 on Monday. On Tuesday, it dropped 1.1% to close at 184.52.
TSM stock rose 3.5% to close at 191.05 on the stock market today.
On May 10, TSM stock broke out of a double-bottom base at a buy point of 148.43, according to IBD MarketSurge charts. It ended the regular session Tuesday in the 20%-to-25% profit-taking zone based on IBD trading principles.
TSM stock is on two IBD stock lists: Leaderboard and Tech Leaders.
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