Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) stock fell 2.58% (As on July 19, 11:09:07 AM UTC-4, Source: Google Finance) though the company raised its full-year revenue forecast given surging demand for chips used in artificial intelligence, and rejected the idea of a joint venture factory in the United States. The business in the second quarter was supported by strong demand for the industry-leading 3nm and 5nm technologies, partially offset by continued smartphone seasonality. TSMC is spending $65 billion on three plants in the U.S. state of Arizona and has other new factories in operation or planning stages in Japan and Germany, which have partner investors. Gross margin for the quarter was 53.2%, operating margin was 42.5%, and net profit margin was 36.8%. In the second quarter, shipments of 3-nanometer accounted for 15% of total wafer revenue; 5-nanometer accounted for 35%; 7-nanometer accounted for 17%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 67% of total wafer revenue. Moving into third quarter 2024, the company expects the business to be supported by strong smartphone and AI-related demand for the leading-edge process technologies.

TSM in the second quarter of FY 24 has reported the profit of T$247.8 billion ($7.60 billion), beating the analysts’ estimates for the adjusted earnings per share of T$238.8 billion, according to an LSEG SmartEstimate. The company had reported the adjusted revenue growth of 32.8 percent to $20.8 billion in the second quarter of FY 24, better than the company’s previous forecast of $19.6 billion to $20.4 billion. Year-over-year, second quarter revenue increased 40.1% while net income and diluted EPS both increased 36.3%. Compared to first quarter 2024, second quarter results represented a 13.6% increase in revenue and a 9.9% increase in net income.

It raised its 2024 revenue forecast to growth of slight to above the mid-20% range in U.S. dollar terms, versus a previous prediction of an increase in the low to mid-20% range. For the current quarter, TSMC said its revenue would increase by as much as 34%, in a range of between $22.4 billion to $23.2 billion. For third quarter 2024, gross profit margin is expected to be between 53.5% and 55.5% and operating profit margin is expected to be between 42.5% and 44.5%. The company adjusted its capital expenditure plans for this year to between $30 billion and $32 billion, compared with a previous forecast of $28 billion to $32 billion.