Taiwan Semiconductor Manufacturing Company (NYSE: TSM), the world’s largest contract chipmaker, continues to make waves in the semiconductor industry with its remarkable performance in the third quarter of 2024.The company reported a year-over-year profit surge of 54%, further cementing its leadership in the global market. Currently trading at $201.4, with a 6% gain over the last five days, TSMC’s robust earnings and strategic partnerships are fueling its rise.TSMC five-day price chart. Source: Google Finan ...

Needham analyst Charles Shi maintained Taiwan Semiconductor Manufacturing Company TSM with a Buy and raised the price target from $210 to $225.The re-rating followed Taiwan Semiconductor’s upbeat quarterly print Thursday.Shi said that Taiwan Semiconductor’s third-quarter print showed a much more robust performance of 3nm primarily due to Apple Inc AAPL.Also Read: What’s Going On With Nvidia Stock On Friday?In contrast, the analyst says 5nm revenue is leveling off after six consecutive quarters of strong seq ...

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Group 1 - Taiwan Semiconductor Manufacturing (TSMC) reported better-than-expected earnings for its third fiscal quarter, positively impacting the entire chip sector [1] - The earnings report highlighted significant growth in earnings and free cash flow for TSMC [1]

Taiwan Semiconductor Manufacturing Company (TSM) reported a 54% hike in net profit on Thursday, as global chipmakers continue to benefit from demand boosted by AI applications. The company's net income was 352.3 billion Taiwanese dollars ($10.1 billion) over the July-September quarter, surpassing an LSEG estimate of $300.2 billion Taiwanese dollars cited by Reuters, as quoted on CNBC. The stock gained 9.8% on Oct. 17, 2024. Find the latest EPS estimates and surprises on Zacks Earnings Calendar. The firm's t ...

Uttam is a growth-oriented investment analyst whose equity research primarily focuses on the technology sector. Semiconductors, Artificial Intelligence and Cloud software are some of the key sectors that are regularly researched and published by him. His research also focuses on other areas such as MedTech, Defense Tech, and Renewable Energy. In addition, Uttam also authors The Pragmatic Optimist Newsletter along with his wife, Amrita Roy, who is also an author on the newsletter as well as on this platform. ...

Investment Rating - The report maintains an "Overweight" rating for TSMC (TSM N) with a target price of $238 [2][14] Core Views - TSMC's Q3 2024 gross margin significantly exceeded expectations at 57 8% (up 3 5 pct YoY and 4 6 pct QoQ) driven by improved capacity utilization and cost reduction measures [3][8] - AI demand is confirmed with strong growth in advanced nodes (3nm and 2nm) and CoWoS capacity expansion [3][14] - The competitive landscape in the foundry industry is shifting in favor of TSMC as competitors face challenges in advanced node development [3][14] Financial Performance - Q3 2024 revenue reached $23 5 billion (up 36% YoY and 12 9% QoQ) surpassing consensus estimates of $23 35 billion [8] - Adjusted net profit for Q3 2024 was NT$325 26 billion (up 54 2% YoY and 31 2% QoQ) exceeding consensus estimates of NT$298 74 billion [8] - Advanced nodes (≤7nm) accounted for 69% of revenue in Q3 2024 (up 10 pct YoY and 2 pct QoQ) with 3nm contributing 20% (up 14 pct YoY and 5 pct QoQ) [10] Revenue Breakdown - By application: HPC accounted for 51% of revenue (up 9 pct YoY) while smartphones contributed 34% (down 5 pct YoY) [11] - By region: North America represented 71% of revenue (up 2 pct YoY) while China accounted for 11% (down 1 pct YoY) [11] Capacity Expansion - CoWoS capacity is expected to double in 2025 following a 2x increase in 2024 [3] - Overseas fab progress is accelerating with Arizona fabs expected to start production in early 2025 2028 and 2030 while Japan and Germany fabs are scheduled for 2024 Q4 and 2027 respectively [3] Valuation and Forecast - Revenue forecasts for FY2024E-FY2026E are revised upward to NT$28 858 billion NT$37 517 billion and NT$43 758 billion respectively [3] - GAAP net profit forecasts for FY2024E-FY2026E are raised to NT$11 844 billion NT$16 757 billion and NT$19 916 billion respectively [3] - The target price is increased to $238 based on DCF valuation maintaining the "Overweight" rating [14]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [3]. Core Insights - The company reported Q3 2024 revenue of $23.50 billion, a year-on-year increase of 36.0% and a quarter-on-quarter increase of 12.9%, exceeding previous guidance [1]. - Gross margin for Q3 2024 was 57.8%, up 3.5 percentage points year-on-year and 4.6 percentage points quarter-on-quarter, also surpassing prior guidance [1]. - Net profit for Q3 2024 reached $10.058 billion, reflecting a year-on-year growth of 51.0% and a quarter-on-quarter growth of 31.4% [1]. - The company has raised its full-year revenue growth guidance from slightly over 25% to nearly 30% [1]. Performance Summary - For Q4 2024, the company expects revenue between $26.1 billion and $26.9 billion, with a midpoint year-on-year growth of 35.1% and a quarter-on-quarter growth of 12.7% [1]. - The projected gross margin for Q4 2024 is between 57.0% and 59.0% [1]. - The company anticipates full-year capital expenditures to exceed $30 billion [1]. Operational Analysis - The improvement in gross margin is attributed to increased utilization rates and cost optimization [2]. - The revenue distribution for advanced process nodes in Q3 2024 was 20% for 3nm, 32% for 5nm, and 17% for 7nm, with 69% of revenue coming from 7nm and more advanced nodes [2]. - Major downstream applications include High-Performance Computing (HPC) and smartphones, with Q3 2024 revenue contributions of 51% from HPC and 34% from smartphones [2]. - The company expects low single-digit growth in PCs and smartphones, but anticipates that AI-related demand will drive higher wafer consumption growth [2]. Profit Forecast and Valuation - Revenue projections for 2024 to 2026 are $89.21 billion, $115.35 billion, and $134.77 billion, respectively, with net profits of $36.11 billion, $48.87 billion, and $58.27 billion [5]. - The company is expected to benefit from an improved competitive landscape in the advanced process foundry industry and increased demand for advanced processes [3].

More than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potential, a solid management team, a sound capital allocation policy, and, most importantly, reasonable valuation. I do not chase quarterly results, nor do I follow the herd mentality. I do not use short-term stock performance as the measure of a company' ...