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Taiwan Semiconductor Manufacturing Company (TSM+2.53%) (TSMC) is expected to beat revenue expectations for the third quarter when it reports quarterly earnings Thursday.
The Taiwanese chipmaker is expected to report September-quarter revenue of $23.3 billion, according to analyst estimates compiled by FactSet (FDS-0.47%). Earlier this month, Bloomberg reported that the company had sales of $23.6 billion for the quarter. The company set its third-quarter guidance between $22.4 billion and $23.2 billion. Meanwhile, TSMC is expected to report $9.3 billion in net income for the third quarter, according to FactSet.
The chipmaker’s shares were down 2.63% at the market close Tuesday. However, its stock is up 84.3% so far this year.
TSMC announced net revenue of $7.82 billion for September — an increase of 0.4% from the previous month and an almost 40% increase year over year. Revenue for January through September grew 31.9% from the previous year, TSMC said.
The chipmaker, which counts Nvidia (NVDA+3.91%) and Apple (AAPL-0.35%) as customers, has seen its sales climb amid the generative artificial intelligence boom. In July, TSMC beat analysts’ expectations for the second quarter, reporting revenue of $20.82 billion — up 40% from a year ago.
Wendell Huang, the chief financial officer of TSMC, said in a statement that the company expects smartphone- and AI-related demand to drive business in the third quarter. C.C. Wei, TSMC’s CEO, said he expects chip production to catch up to demand by 2025 or 2026.
In August, TSMC reported revenue of NT$250.87 billion ($7.8 billion) — a 33% increase from the previous year. The company’s August sales were down 2.4% from July, which saw a 45% surge year over year.