TLDR:
- TSMC reported a 34% revenue increase in November 2024, reaching NT$276.1 billion ($8.5 billion)
- October-November combined sales rose 31.4%, with analysts projecting 36.3% growth for current quarter
- Company’s stock has surged approximately 80% in 2024
- Earnings per share expected at $2.14 for current quarter, representing 48.6% year-over-year growth
- Revenue projections show $110.43 billion estimate for next fiscal year, indicating 24.9% growth
Taiwan Semiconductor Manufacturing Company (TSMC) reported November 2024 revenue of NT$276.1 billion ($8.5 billion), marking a 34% increase compared to the same period last year. The growth highlights the company’s continued momentum in the artificial intelligence chip manufacturing sector.
The world’s largest contract chipmaker, which produces semiconductors for tech giants including Apple Inc. and Nvidia Corp., has seen its combined sales for October and November rise by 31.4%. This performance aligns with analyst expectations, who project a 36.3% growth in sales for the current quarter.
TSMC’s stock performance has reflected this strong business trajectory, with shares up approximately 80% year-to-date. The company has maintained its position as a key player in the semiconductor industry, particularly in the manufacturing of advanced chips required for AI applications.
For the current quarter, TSMC is expected to post earnings of $2.14 per share, representing a 48.6% increase from the previous year. The consensus earnings estimate has seen a 6.2% upward revision over the past 30 days, indicating growing confidence in the company’s near-term prospects.
Looking ahead to the next fiscal year, analysts project revenue to reach $110.43 billion, suggesting a 24.9% growth rate. This forecast reflects the sustained demand for TSMC’s manufacturing capabilities, particularly in advanced semiconductor technologies.
The company’s recent performance has been largely attributed to the ongoing expansion of artificial intelligence infrastructure. Since the launch of ChatGPT in late 2022, TSMC has benefited from increased spending on servers and data centers by major technology companies, including Microsoft Corp. and Amazon.com Inc.
In the last reported quarter, TSMC achieved revenues of $23.5 billion, showing a year-over-year increase of 36%. The company’s earnings per share reached $1.94, compared to $1.29 in the same period of the previous year, exceeding analyst expectations.
The company has maintained its competitive edge while rivals Samsung Electronics Co. and Intel Corp. face challenges in gaining traction in the contract manufacturing space. This position has potentially strengthened TSMC’s pricing power in the market.
Current market data indicates TSMC is trading at a discount compared to its peers, according to various valuation metrics. The company has consistently beaten consensus EPS estimates in the trailing four quarters and topped revenue expectations during the same period.
For the current fiscal year, the consensus earnings estimate stands at $6.95 per share, pointing to a 34.2% increase from the prior year. This estimate has been revised upward by 3% over the last 30 days.
TSMC’s monthly performance suggests it remains on track to reach the upper end of its guidance, despite restrictions on supplies to Chinese AI-chip designers due to US export controls. The company continues to see robust demand for both AI and high-end smartphone chips.
The two-month average run rate, if maintained at 68.5% as seen in the previous three years, could result in fourth-quarter sales reaching NT$861.5 billion.
Recent financial indicators show the company’s revenue growth has remained steady despite market concerns about potential slowdowns in data center construction. TSMC’s performance continues to be driven by demand for advanced semiconductor manufacturing capabilities.
Looking at the current fiscal year’s projections, analysts expect TSMC’s revenue to reach $88.39 billion, representing a 27.6% increase. The company has maintained its growth trajectory while navigating global semiconductor market dynamics.
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