Source: Glonui.
On June 7th,$Taiwan Semiconductor (TSM.US)$Announced May sales report. Driven by strong demand for ai and the recovery of some consumer electronics products, TSMC's sales in May increased by 30% to NT $229.6 billion (approximately $7.1 billion).
In May, sales increased by 30% compared to the same period last year.
According to the released data, the combined revenue in May 2024 was about NT$229.62 billion, a decrease of 2.7% from last month, and an increase of 30.1% from the same period last year.
In the first 5 months of 2024, Taiwan Semiconductor's cumulative revenue was approximately NT$1.06 trillion, a 27% increase from the same period last year.
As the world's largest contract chipmaker, Taiwan Semiconductor has benefited from the intensifying competition for AI services worldwide. The company produces semiconductors for Nvidia and sells them to companies such as Microsoft and OpenAI. These partnerships have driven significant growth in Taiwan Semiconductor's sales.
In the first three months of this year, global smartphone sales have also moved away from long-term stagnation, driving strong expectations for mobile chip orders.
On June 4, Taiwan Semiconductor announced at the shareholders' meeting that President Wei Zaishan officially took over as the company's chairman from Liu De, who had retired. At the shareholders' meeting, Wei Zaishan, the new chairman of Taiwan Semiconductor, stated that the company is bullish on the growth of AI demand. He expects AI development to drive the recovery of the chip industry in 2024. Taiwan Semiconductor will grow quarter by quarter this year, and its full-year revenue in US dollars can achieve an increase of 20% to 25%.
In addition, Liu De, Taiwan Semiconductor's former leader, is also confident about the prospect of demand brought by the AI wave, believing that this year will be a year of great growth for Taiwan Semiconductor. Driven by the demand for AI applications, the company is confident about its growth in the next few years.
Morgan Stanley raises target price.
After the shareholders' meeting, Wei Zaishan hinted that he was considering raising the price of the company's AI chip production services. He also revealed that he had discussed the issue of price increases with Nvidia CEO Huang Renxun.
At the investor luncheon on the 5th of the Taipei Computer Show, Morgan Stanley asked Huang Renxun for his views on TSMC's desire to raise prices. Huang Renxun replied, 'I think TSMC's prices are too low, and their contribution to the world and the technology industry is underestimated from the financial statements.'
Nvidia is now Taiwan Semiconductor's second largest customer, accounting for 10% of Taiwan Semiconductor's 2024 revenue.
On the same day, Morgan Stanley raised Taiwan Semiconductor's target price from NT$928 to NT$980, maintaining an 'overweight' rating and bullish on TSMC's ability to pass on additional costs to its customers. Barclays raised TSMC's ADR target price from $150 to $170 and maintained an 'overweight' rating.
According to Bloomberg data, in just one week, the target price of TSMC stock was raised from NT$951 to NT$968, and TSMC ADR was raised from $163.4 to $164.6.
In terms of stock price performance, on Thursday, the stock price once reached $164.7, a record high. The stock has risen nearly 60% so far this year.
Editor / jayden