Apple supplier TSMC’s profit beats estimates Thursday, July 18, 2024 8:59 am 1 Comment
Major Apple supplier Taiwan Semiconductor Manufacturing Co. (TSMC)’s earnings beat analysts’ heightened estimates as global demand for AI chips continues to be insatiable.
Jane Lanhee Lee for Bloomberg News:
Market expectations had risen in the weeks leading up to TSMC’s report on Thursday, with the AI frenzy and related investment showing no signs of slowing down.
The chipmaker for Apple Inc. and Nvidia Corp. said net income rose to NT$247.8 billion ($7.6 billion). The average estimate was for a 29% increase, and many expected TSMC to hike its full-year outlook after sales jumped in the June period. The company said last week that its second-quarter sales grew at the fastest pace since 2022.
Insatiable demand for Nvidia chips has propped up TSMC’s performance, while the wider smartphone market is on a path to recovery. Apple has seen handset sales stabilize, and provided an upbeat guidance to its suppliers on shipments for the upcoming iPhone 16 based on the potential strength of its new AI tools.
MacDailyNews Note: Apple Intelligence is the personal intelligence system that brings powerful generative models to iPhone, iPad, and Mac. For advanced features that need to reason over complex data with larger foundation models, Apple created Private Cloud Compute (PCC), a groundbreaking cloud intelligence system designed specifically for private AI processing. For the first time ever, Private Cloud Compute extends the industry-leading security and privacy of Apple devices into the cloud, making sure that personal user data sent to PCC isn’t accessible to anyone other than the user — not even to Apple. Built with custom Apple Silicon, manufactured by TSMC, and a hardened operating system designed for privacy, Apple’s PCC is the most advanced security architecture ever deployed for cloud AI compute at scale.
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