Taiwan Stock Forecast: TSM’s September Revenue Dips

Taiwan Semiconductor Company (TSM:NYE) has reported its revenue figures for September, revealing a 4.4% sequential decrease, reaching NT$180,430 million. In comparison to the same period last year, this signifies a notable 13.4% drop. This article will highlight the Taiwan stock forecast and its implications in the dynamic sector of semiconductors.

TSM’s Key Role as Supplier to Tech Giants:

TSM has been a significant supplier for tech giants such as Apple (AAPL:NSD) and NVIDIA (NVDA:NSD). The semiconductor industry, vital for various electronic devices, has faced considerable supply challenges. Investors, therefore, eagerly await TSM’s third-quarter results, scheduled for October 19. The company is grappling with delays at its massive chip facility in Arizona and is also actively focusing on cost control while keeping a cautious eye on demand trends.

Nine-Month Revenue Performance:

Over the first nine months of 2023, TSM generated NT$1.54 trillion in revenue, reflecting a 6% dip compared to the previous year. Notably, investors had expected a modest decline. The revenue from smartphone and laptop chips was partially offset by robust demand for AI chips.

TSM’s Third Quarter:

TSM is projected to have raked in $17 billion in revenue for the third quarter, surpassing Street estimates. Analysts’ consensus anticipates an EPS of $1.15, with revenue touching $16.96 billion for the same period. Remarkably, in the corresponding period last year, TSM outperformed expectations with an EPS of $1.70, exceeding estimates by approximately $0.05.

Taiwan Stock Forecast:

The stock forecast for Taiwan from three analysts reveals an average target price of USD 122.00 for the next 12 months. The consensus among analysts rates TSM as a ‘Strong Buy.’ Stock Target Advisor’s analysts are ‘Slightly Bullish.’ This judgment is driven by ten positive signals and six negative signals.

Current Performance:

Notably, TSM’s closing stock price was USD 87.03. This price has changed by +0.72% over the past week, -8.00% over the past month, and +16.85% over the last year.

Conclusion:

Taiwan Semiconductor Manufacturing Company Limited’s September revenue dip, while significant, reflects a mixed picture in the semiconductor industry. As the company gears up to unveil its third-quarter earnings, all eyes are on how it navigates the supply challenges and capitalizes on the growing demand for AI chips. 

Maryam Nasir