TSMC raises growth forecasts for 2024

Taiwan Semiconductor Manufacturing Co $TSM raised its 2024 revenue growth forecasts after releasing quarterly results that beat expectations. This reflects the company's confidence in the long-term growth of global artificial intelligence (AI) spending.

The maker of chips for Apple Inc. and Nvidia Corp. now expects revenue growth beyond the 20% maximum midpoint it had previously forecast. For the current quarter, TSMC forecasts revenue of up to $23.2 billion, above analysts' expectations. The company also refined its capital expenditure forecast to the high end of its estimate, $30 billion to $32 billion, up from $28 billion previously.

The revisions underscore TSMC's view that AI spending will remain high despite rising trade tensions between the U.S. and China. In both countries, startups and technology firms such as Microsoft Corp. and Baidu Inc. are investing in AI infrastructure, which is largely powered by Nvidia products. TSMC shares listed in the U.S. thus rose more than 3.5% in…