Taiwan Semiconductor Manufacturing Company Ltd. TSM on Wednesday reported an 8.4% drop in December revenues of NT$176.3 billion ($5.66 billion).
December sales were down 14.4% from November 2023. Revenue for January through December 2023 totaled NT$2,161.74 billion, a decrease of 4.5% compared to the same period in 2022.
TSM's December print completed an NT$625.5 billion quarter, surpassing the average analyst estimate for sales over the last three months of NT$616.2 billion, Bloomberg reported.
This performance aligns with the earnings from the same period in the previous year, which was one of the company's highest quarterly results.
The quarterly performance gained traction from demand from artificial intelligence players that offset dull smartphone and laptop chip sales, Bloomberg added.
In 2023, TSMC adjusted its capital expenditure strategies in response to the consumer electronics industry facing an excess of unsold inventory, the report read.
The chip manufacturer indicated that the lowest point in demand was reached during the summer, with expectations of a recovery emerging in the months leading up to 2024, the report read.
Executives at the company, including Chief Executive Officer C. C. Wei, anticipate growth in overall business this year. This optimism is partly due to the boost in their high-performance computing business, driven by increased demand for AI chips from NVIDIA Corporation NVDA and Advanced Micro Devices, Inc. AMD, the report added.
Price Action: TSM shares are trading higher by 0.13% to $102.02 premarket on the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Ann Wang via Flickr
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