TLDR
- TSM stock fell $15.12, or 3%, on Thursday even after a third-quarter beat.
- Net profit rose 68.7% to NT$763.1 billion, above the NT$746.34 billion estimate.
- Revenue climbed 41.2% to NT$1.49 trillion, topping the NT$1.47 trillion forecast.
- Operating margin of 58.7% beat the top end of TSMC’s guidance range.
- TSMC is reportedly weighing a Texas investment on top of its Arizona plans.
TSM stock fell $15.12, or 3%, on Thursday, even as Taiwan Semiconductor reported a record third quarter. Both revenue and profit came in above what analysts expected.
Taiwan Semiconductor Manufacturing Company Limited, TSM
Net profit hit NT$763.1 billion, up 68.7% from a year ago. LSEG SmartEstimates had pointed to NT$746.34 billion.
Revenue rose 41.2% to NT$1.49 trillion, or about $46.4 billion. The forecast stood at NT$1.47 trillion.
It is the sixth straight quarter of record net profit. The run shows no sign of tiring yet.
Diluted earnings per share came in at $0.92. The board also approved a NT$7.00 cash dividend for the second quarter.
How the Quarter Broke Down
Operating margin reached 58.7%, above the 58% top end of guidance. Pricing power is doing plenty of the heavy lifting here.
Free cash flow jumped to NT$476.56 billion from NT$139.38 billion a year earlier. That is more than three times the prior-year figure.
By node, 3-nanometer chips made up 33% of wafer revenue. Five-nanometer chips added 28%, and 7-nanometer chips brought in 10%.
Two-nanometer chips contributed 8% of wafer revenue. Advanced nodes, meaning 7-nanometer and below, made up 79% of the total.
High-performance computing was the largest platform at 68% of revenue. Smartphones followed at 21%.
Automotive grew fastest from the prior quarter, up 23%. Cars are quietly becoming a chip story too.
U.S. Expansion Plans
In July, TSMC laid out a total planned investment of $265 billion in Arizona. That plan remains in place.
Reports now say the company is looking beyond Arizona. It is said to be evaluating a possible investment in Texas.
No formal announcement has been made on Texas. Net income converts to roughly $23.8 billion, while revenue was reported at $46.36 billion in one source and $46.72 billion in another.
TSM stock was down $15.12 on Thursday, a 3% decline.
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