2024

April

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<p class="has-drop-cap">Taiwan Semiconductor Manufacturing Company (NYSE: TSM) <a aria-label=" (opens in a new tab)" href="https://investor.tsmc.com/english" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">reported</a> net income and revenue that beat analysts’ expectations in Q4 2023. The company expects notable revenue growth in the new fiscal year, fueled primarily by artificial intelligence and high-performance computing. As a key player in the semiconductor and consumer electronics sectors, the recovery in TSMC’s sales will likely benefit other stocks from these categories.&nbsp;</p> 
<h3 id="tsmc-says-revenue-can-surge-26-in-2024-amid-ai-expansion">TSMC Says Revenue Can Surge 26% in 2024 Amid AI Expansion</h3> 
<p>TSMC said its revenue <a href="https://asia.nikkei.com/Business/Tech/Semiconductors/TSMC-predicts-revenues-could-grow-26-this-year-on-AI-boom" target="_blank" aria-label="could surge as much as 26% in 2024 (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">could surge as much as 26% in 2024</a>, citing growth in the global electronics industry driven by the unprecedented rise of generative AI.</p> 
<p>This forecast comes as TSMC reported a 19.3% year-on-year decline in fourth-quarter net income to 238.71 billion New Taiwan dollars ($7.48 billion), with revenue remaining relatively stable at NT$625.52 billion compared to the previous year. Wei anticipates a full-year revenue increase ranging from 21% to 26%.</p> 
<p>The quarterly decline in TSMC’s net income was less severe than anticipated, indicating a potential stabilization in the chip industry after a downturn. Recent weeks have seen positive signals of recovery in the chipmaking sector, with the Semiconductor Industry Association noting an increase in chip sales in November following over a year of declines.&nbsp;</p> 
<p>TSMC, a key player with major clients including Qualcomm Inc. and Apple, will likely witness sales stabilization as the consumer economy strengthens. Consequently, more robust sales could potentially lead to a recovery in stock prices in the consumer electronics sector.&nbsp;</p> 
<p>Wei’s forecast of a double-digit revenue increase this year is primarily based on the continued expansion of production for high-end AI chips. The CEO said TSMC anticipated that the annual growth rate for AI computing could hit 50% in the coming years, while AI processors could contribute 15-20% to total revenue in the following five years. TSMC’s biggest AI chip clients include the <a href="https://tokenist.com/nvidia-just-hit-an-all-time-high-of-538-is-it-still-a-buy/" rel="dofollow" class="deco-link">rapidly growing Nvidia</a> and <a href="https://tokenist.com/amd-sets-sight-on-ai-chip-market-plans-to-dethrone-nvidia-with-new-product/" class="deco-link">AMD</a>.&nbsp;</p> 
<blockquote class="wp-block-quote"> 
 <p>“So far today, everything you saw on the AI [computing chips] is from TSMC. We already see that momentum … The demand for AI suddenly picked up since March or April last year after the boom of ChatGPT.”</p> <cite>– Wei said. </cite>
</blockquote> 
<p>AI and high-performance computing are predicted to replace mobile and smartphone chips as TSMC’s key growth catalysts, according to analysts. Morgan Stanley’s Charlie Chan forecasts that AI-related semiconductors will constitute 15% of TSMC’s revenue by 2027, with an 18% annual growth rate.</p> 
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<h3 id="tsmc-pops-6-in-premarket">TSMC Pops 6% in Premarket&nbsp;</h3> 
<p>In the wake of TSMC’s better-than-expected Q4 profit and revenue, as well as its bullish 2024 guidance, the chipmaker’s shares climbed over 6% in premarket trading Thursday.&nbsp;</p> 
<p>The stock’s performance in 2023 was somewhat of a rollercoaster ride, though it still ended the year with gains of more than 42%, outperforming the broader market. This year, the chipmaker staged a slower start, rising just 1.4% year-to-date.&nbsp;</p> 
<p>The broader equity market, notably the <a href="https://tokenist.com/the-bull-and-bear-case-for-spx-in-2024/" rel="dofollow" class="deco-link">S&amp;P 500</a>, has also been slightly down since January 1 due to renewed uncertainty about the Federal Reserve’s monetary policy.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe> 
<p><em><strong>With TSMC predicting sales stabilization, do you think stocks of key AI players will continue to surge rapidly in 2024? Let us know in the comments below.&nbsp;</strong></em></p> 
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/the-key-takeaways-from-tsmcs-q4-earnings/">The Key Takeaways from TSMC’s Q4 Earnings</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

The Key Takeaways from TSMC’s Q4 Earnings

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