- TSMC has updated its forecast for capital expenditure in FY 2024 to be between $30 billion and $32 billion, slightly narrowing the previous $28 billion to $32 billion range.
- Analysts had estimated TSMC’s capital expenditure would be around $29.55 billion.
- TSMC expects sales for the third quarter to range between $22.4 billion and $23.2 billion.
- The company projects a gross margin between 53.5% and 55.5%, exceeding the analyst estimate of 52.5%.
- Operating margin is forecasted to fall between 42.5% and 44.5%, higher than the analyst estimate of 42.1%.
- TSMC reported a second-quarter net income of NT$247.8 billion, a 36% increase year over year, and above the NT$235 billion estimated by analysts.
- The gross margin for the second quarter was 53.2%, slightly up from 53.1% in the previous quarter, and higher than the estimated 52.6%.
- Operating profit reached NT$286.56 billion, growing 42% year over year, surpassing the NT$274 billion estimate.
- The operating margin was 42.5%, an increase from 42% in the previous quarter, and above the estimated 41.5%.
- Second-quarter sales totalled NT$673.51 billion, a significant 40% year-over-year increase, compared to the NT$658.14 billion estimated by analysts.
- TSMC expects its third-quarter business to be primarily supported by the smartphone and AI sectors.
- The company currently has 35 buy ratings, 1 hold rating, and no sell ratings.
Third Quarter Forecast
Second Quarter Results
Taiwan Semiconductor (TSMC) on Smartkarma
On Smartkarma, a platform for independent investment research, analysts have been closely following Taiwan Semiconductor (TSMC). William Keating‘s recent report titled “TSMC’s June Revenue Declined 9.5% MoM. Should We Be Worried?” discusses TSMC’s Q224 revenue of US$20.9 billion, which exceeded expectations by $457 million. Despite a 9.5% monthly decline, TSMC saw a significant year-over-year increase of 33.7%. This marks TSMC’s highest revenue quarter ever. YTD revenues are up 28% YoY, aligning well with the company’s forecast for a >20% YoY increase in 2024.
In another optimistic analysis by Patrick Liao, titled “TSMC (2330.TT; TSM.US): CoWoS Demand Continues to Increase in 2024.“, TSMC’s strong growth outlook is highlighted, driven by rising CoWoS demand and impressive stock price performance. The report suggests a potential yearly growth target of around 25% YoY in 2024. Notably, TSMC’s CoWoS demand is on the rise, with capacity expected to increase by approximately 5% this year. TSMC’s stock price has surged by 55% in Taiwan and 66.3% in US markets, leading analysts to believe in further growth opportunities for the company.
A look at Taiwan Semiconductor (TSMC) Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Taiwan Semiconductor Manufacturing Company (TSMC) has a positive long-term outlook. With strong momentum and growth scores of 5 and 4 respectively, the company is positioned well for future expansion and performance. TSMC is also rated highly for resilience, indicating its ability to weather market challenges effectively. While the value and dividend scores are more moderate at 2, the overall outlook for TSMC is promising based on these scores.
Taiwan Semiconductor Manufacturing Company, Ltd., known for its integrated circuit manufacturing, offers a range of services including wafer manufacturing, assembly, testing, and design services. TSMC’s integrated circuits have diverse applications across industries such as computers, communication, consumer electronics, automotive, and industrial equipment. With solid growth and resilience scores, TSMC appears well-equipped to navigate future market conditions and capitalize on opportunities in the semiconductor industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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