Core Viewpoint - TSMC shares have shown significant growth, with a 6.7% increase over the past month and a 77.4% rise since the beginning of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Semiconductor - Circuit Foundry industry [1] Financial Performance - TSMC has consistently exceeded earnings expectations, reporting an EPS of $1.38 against a consensus estimate of $1.29 in its last earnings report [2] - For the current fiscal year, TSMC is projected to achieve earnings of $6.16 per share on revenues of $85.12 billion, reflecting an 18.92% increase in EPS and a 22.83% increase in revenues [2] - The next fiscal year forecasts earnings of $7.91 per share on revenues of $103.84 billion, indicating year-over-year changes of 28.34% and 21.99%, respectively [2] Valuation Metrics - TSMC's stock trades at 29.9X current fiscal year EPS estimates, aligning with the peer industry average [4] - On a trailing cash flow basis, the stock also trades at 21.6X, consistent with its peer group's average [4] - The company has a PEG ratio of 1.18, which does not place it among the top tier of stocks from a value perspective [4] Zacks Rank - TSMC holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates [5] - The stock meets the criteria for selection, as it carries a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, suggesting potential for further growth in the near term [5]

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is experiencing significant sales growth, with a projected 40% year-over-year increase in Q2 2024, indicating strong momentum ahead of its earnings report [1][6][12] Sales Performance - TSMC's net sales for June reached NT$207.87 million, contributing to total Q2 2024 sales of NT$673.51 million, reflecting a year-over-year growth rate of 32.9% for June and 40.1% for the quarter [5][7] - The company has seen four consecutive months of sales growth exceeding 30% [5] - In Q1 2024, TSMC's net sales were NT$592.64 million, with a quarter-over-quarter decrease of 5.3% attributed to seasonal smartphone demand [5][6] Revenue Breakdown - High-performance computing (HPC) is the largest contributor to TSMC's sales, accounting for 46% of net sales in Q1 2024, up from 43% in Q4 2023 [2][3] - The 5 nanometer process technologies are crucial for TSMC, representing 56% of net sales in Q1 2024, primarily used for AI chips [4] Market Expectations - Analysts expect TSMC's earnings per share (EPS) to be $1.41 for Q2 2024, reflecting a year-over-year growth of 24% [8][9] - The market may adjust profit estimates upward due to TSMC's robust sales growth and the ongoing AI boom, potentially driving the stock to new highs [8][12] Competitive Positioning - TSMC's valuation is currently at a profit multiple of 23.8x, based on anticipated profit growth of 26% year-over-year [9] - Comparatively, Nvidia Corp. is valued at 36.5x with a projected profit growth of 36%, while Micron Technology is expected to see a staggering 780% profit growth next year [10]

Group 1: Market Focus - The technology sector, particularly stocks related to artificial intelligence, is currently attracting significant investor attention [1] - Investors are encouraged to explore the VanEck Semiconductor ETF to refine their stock selections [1] Group 2: Company Performance - Taiwan Semiconductor Manufacturing (TSM) shares have reached an all-time high, driven by a double-digit revenue increase [2] - TSM reported a 40% year-over-year revenue increase, indicating strong financial momentum [6] - Analysts at Susquehanna have raised TSM's price target to $250, suggesting a potential upside of 33% from current levels [6] Group 3: Government Support and Industry Dynamics - The U.S. government has allocated up to $6.6 billion to TSM for establishing semiconductor factories in states like Arizona and Ohio [4] - TSM is a key supplier for major technology companies, including Apple and NVIDIA, which enhances its market position [4] - The geopolitical landscape, particularly U.S.-China relations, has raised concerns about tariffs and embargoes affecting TSM [4][8] Group 4: Investment Trends - Institutional investments in TSM have reached $71.2 billion over the past year, reflecting strong confidence in the stock [9] - TSM's P/E ratio stands at 30.8, significantly lower than NVIDIA's 50.0, despite similar projected EPS growth rates [8]

Core Insights - TSMC's stock has seen a modest increase, with a 2.3% rise reported on a recent Wednesday morning [1] - The company reported a 10% decline in June 2024 revenue compared to May, but a significant year-over-year increase of nearly 33% [1] - For the first half of 2024, TSMC's sales are up 28% compared to the same period in 2023 [1] Revenue Performance - TSMC generated approximately $38.8 billion in revenue during the first six months of 2024, achieving about 46% of analysts' revenue forecasts for the full year [2] - If the current revenue growth rate continues, TSMC is likely to meet or exceed analyst revenue expectations [2] Earnings Outlook - Consensus forecasts suggest TSMC will earn about $6.35 per share by the end of fiscal 2024, indicating a valuation of nearly 30 times earnings [3] - The company's modest dividend yield of 1.3% slightly improves the valuation perspective [3] - Despite a 77% increase in stock price over the past year, which outpaces the S&P 500's growth, the potential for significant future gains may be limited [3]

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Group 1 - Taiwan Semiconductor Manufacturing Company (TSMC) reported a 33% increase in June revenue year-over-year, totaling NT$207.87 billion ($6.38 billion) [1] - TSMC's second-quarter revenue reached NT$673.51 billion ($20.67 billion), exceeding analyst expectations by approximately NT$20 billion and marking a 40% increase from last year's NT$480.84 billion [1] - The company's American depositary receipts (ADRs) rose 2.5% to $189.17, reflecting an over 80% increase year-to-date [3] Group 2 - TSMC has benefited from the AI boom, which has driven demand for chips, compensating for decreased demand in other sectors such as automotive semiconductors [2] - The company surpassed its own revenue projections for the quarter, which were estimated between $19.6 billion to $20.4 billion [2] - TSMC is set to receive up to $6.6 billion in grants from the CHIPS and Science Act to enhance its production capacity in the U.S., with plans for three factories in Arizona operational by 2025, 2028, and 2030 [3]

A slight price-target increase only added to the widespread bullish sentiment on the company.For the most part, Monday was a rather forgettable day for the stock market. The S&P 500 index could only muster a 0.1% gain, and many titles traded sideways during the session. So the more than 1% gain of chipmaking giant Taiwan Semiconductor Manufacturing (TSM 1.44%) to a new, all-time high share price was notable.The long-tail trend is its friendThat day, Taiwan Semiconductor benefited from a long-tail trend, com ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: TSMC, with most of its factories based in Taiwan, is well placed to also reap the rewards of the AI frenzy. The entry of Taiwanese chip giant TSMC into the elite club of the world's most valuable companies is further proof that the generative AI revolution is shaking up Wall Street. TSMC, listed in both Taiwan and New York, br ...

The semiconductor industry is staging a solid rebound on growing demand and the optimism surrounding artificial intelligence (AI), especially generative AI. Inflationary pressures were one of the primary reasons behind slowing demand in the early part of 2024.However, pressures have eased with inflation showing signs of cooling. The Semiconductor Industry Association (SIA) said on Jul 5 that global semiconductor sales totaled $49.1 billion in May, increasing 19.3% year over year. Sequentially, sales jumped ...

台积电(TSM) 首发报告 芯片创新关键节点,半导体行业幕后推手 传统周期叠加 AI 需求,晶圆代工有望迎来量价齐升:生成式 AI 的 发展驱动算力芯片需求,与此同时消费电子的更新周期有望受益于 端侧 AI 落地缩短。算力芯片方面,英伟达的 H 系列及未来的 B 系 列,AMD 的 MI300 系列等 GPU 算力芯片以及谷歌、AWS 等云厂商自 研的 ASIC 芯片均由台积电代工;终端消费产品方面,2024H2 公司 重要客户苹果及高通即将推出下一代智能手机、笔记本电脑等消费 电子产品中的处理器均采用台积电先进制程代工。AI 算力芯片+终 端消费产品需求有望带动台积电 3nm/5nm 先进制程芯片下半年的出 货量分别实现同比增长 56.5%/30.3%,2024 年底台积电先进制程 ASP 有望提升 5-10%。 先进封装产能未来两年有望连续翻倍:摩尔定律趋近极限后通过 增加晶体管数量带来提升芯片性能的方式收效甚微,未来先进封装 解决方案将继续提升芯片互联密度,台积电也将持续受益于 AI 带 来的算力芯片更高的存算比需求。我们预计 2024/2025/2026 年底 CoWoS 封装产能有望达到 3.5/5 ...