Managing Director, Zero One, Zero One

Vincent Fernando, CFA

20 years of experience researching capital markets in Asia and the USA.

Managing Director, Zero One

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Equity Bottom-Up

Taiwan Semiconductor (TSMC) - ADR / Equity Bottom-Up

Taiwan Semiconductor (TSMC) - ADR (TSM US)

<ul>
<li>Our aggregate analysis of the 1Q23 earnings season showed a more balanced beat/miss ratio than 4Q22 likely due to already-downgraded forecasts presenting a lower expectations hurdle.</li>
<li>Semiconductor's inventory situation overall appeared to get worse in 1Q23... Excess inventory digestion is still a few quarters away for many semiconductor companies. Margins fell to the last cycle lows.</li>
<li>Hardware showed small signs of overall inventory improvement. Margins fell further but remained pretty high relative to the previous cycle.</li>
</ul>


Our aggregate analysis of the 1Q23 earnings season showed a more balanced beat/miss ratio than 4Q22 likely due to already-downgraded forecasts presenting a lower expectations hurdle.
Semiconductor's inventory situation overall appeared to get worse in 1Q23... Excess inventory digestion is still a few quarters away for many semiconductor companies. Margins fell to the last cycle lows.
Hardware showed small signs of overall inventory improvement. Margins fell further but remained pretty high relative to the previous cycle.


Taiwan Tech: Insights from 1Q23 Earnings Season Into Where We Are in the Cycle