It is generally accepted that the observed boom in artificial intelligence systems generally has a positive effect on the financial performance of TSMC, which is the largest contract chip manufacturer, but October statistics showed a slowdown in revenue growth to its lowest level since February.
Image Source: TSMC
In any case, revenue growth of 29.2% year-on-year to $9.8 billion can hardly be called a weak result. Another thing is that from March to September inclusive, TSMC’s revenue grew in annual comparison monthly by more than 30%. Analysts cited by Bloomberg expect TSMC’s revenue to grow by 36.1% in the fourth quarter as a whole, so the October drawdown in growth rates as a whole should not harm quarterly dynamics.
On a sequential basis, TSMC’s October revenue grew 24.8%. In just ten months of this year, the company was able to increase revenue by 31.5% compared to the same period in 2023. This year, TSMC expects to increase revenue by 30%, although three months ago it limited its growth forecast to 25%. The company plans to keep capital expenditures between $30 and $32 billion, but will inevitably increase them next year. In the current quarter, the manufacturer expects revenue from $26.1 to $26.9 billion.