TSMC's Q2 Sales Surge Expected Amid Rising AI Demand

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) held its Q1 2024 earnings conference call, reporting a 5.3% decrease in first quarter revenue in NT dollars or 3.8% in U.S. dollars, attributed to smartphone seasonality but partially offset by continued HPC-related demand. The company's gross margin increased to 53.1%, and operating margin increased to 42%. Revenue by technology showed 3-nanometer process technology contributing 9% of wafer revenue, while 5-nanometer and 7-nanometer accounted for 37% and 19%, respectively. HPC accounted for 46% of first quarter revenue, while smartphone accounted for 38%.