Since February this year, chip giant TSMC has recorded a year-on-year growth in monthly sales for a long time.
Encouraged by this news, the company's stock price hit its largest increase in nearly half a year on Monday.
TSMC's chip sales have increased year-on-year, highlighting the expectation that the global chip market is gradually recovering from the low point of the epidemic.
TSMC's monthly revenue has been increasing year-on-year for a long time
Recently, TSMC released a monthly report showing that its revenue in October was NT $243.2 billion (approximately RMB 54.8 billion), an increase of 34.8% month on month and 15.7% year on year. This is the first time TSMC has achieved a year-on-year increase in monthly sales since February.
At the beginning of trading on Monday, TSMC's stock price surged 4.1% in the Taiwan stock market, setting its largest daily gain since May. As of press release, the increase in the company's stock price has narrowed slightly to 2.87%.
In the first 10 months of this year, TSMC's revenue decreased by 3.7% year-on-year to NT $1.78 trillion (approximately RMB 401.2 billion).
Will the chip market soon hit bottom?
TSMC CEO Wei Zhejia stated last month that after more than a year of post pandemic downturn, the company expects the chip market to hit bottom "soon".
He mentioned that the prosperity of artificial intelligence has stimulated the demand for chips for training large language models, and at the same time, TSMC has found early signs of improved demand in consumer electronics industries such as smartphones and personal computers - which are one of TSMC's largest businesses.
Wei Zhejia stated that given its strong technological leadership and extensive customer base, the company is confident in achieving healthier growth in 2024.
Last month, TSMC predicted that its sales for this quarter would reach $18.8 billion to $19.6 billion (approximately RMB 137.1 billion to 143 billion), higher than analysts' expectations.
After announcing its October sales, TSMC needs to achieve sales of approximately $11.7 billion (approximately RMB 85.3 billion) in the remaining period of this year to reach this expected midpoint.