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TSMC Soars: AI Chip Demand Fuels Strong Q3 Performance and Earnings Buzz

Nasdaq Semiconductor Related Newsletter

Taiwan Semiconductor's Strong Q3 Performance and Upcoming Earnings

Revenue Growth and AI Demand

Taiwan Semiconductor Manufacturing Company (TSMC) has reported robust revenue growth in September and for the third quarter of 2024. The company's September revenue reached NT$251.87 billion, a 39% year-over-year increase. For the July-to-September quarter, TSMC's sales totaled NT$759.7 billion, exceeding the company's forecasted range of $22.4 billion to $23.2 billion.

This strong performance is largely driven by the surging demand for artificial intelligence (AI) chips. TSMC's advanced chip manufacturing capabilities are in high demand across sectors such as data centers, autonomous vehicles, and edge computing.

Earnings Expectations and Analyst Ratings

TSMC is set to release its full Q3 earnings report on October 17, 2024. The Zacks Consensus Estimate for the quarter's earnings is $1.74 per share on revenues of $22.72 billion. Despite a positive earnings surprise history, the current Earnings ESP is 0.00%, and the stock has a Zacks Rank #2 (Buy).

Analysts have set a wide range of price targets for TSMC, from $170.00 to $250.00, with an average target of $204.71, representing a 10.2% increase from the last closing price.

ETFs and Investment Opportunities

Investors can also consider TSMC-heavy ETFs such as the SP Funds S&P World (ex-US) ETF (SPWO), SP Funds S&P Global Technology ETF (SPTE), Matthews Emerging Markets ex China Active ETF (MEMX), and VanEck Semiconductor ETF (SMH). These ETFs offer diversified exposure to the semiconductor sector with significant weights in TSMC.

Stock Performance

TSMC's stock has gained significantly, up over 80% year-to-date, reflecting the company's strong revenue growth and its dominant position in the AI chip market. The stock is currently trading around record levels.

Key Points

  • Revenue Growth: TSMC's Q3 revenue surpassed forecasts, driven by AI chip demand.
  • Earnings Expectations: Q3 earnings report set for October 17, with a consensus estimate of $1.74 per share.
  • Analyst Ratings: Strong Buy consensus with a potential 10.2% upside.
  • ETFs: Investors can consider TSMC-heavy ETFs for diversified exposure.
  • Stock Performance: TSMC's stock has gained over 80% year-to-date.

References: Taiwan Semiconductor's Pre-Q3 Earnings: ETFs In Focus | Barchart: Taiwan Semiconductor (TSM) Sales Jumped in September | Nasdaq: Taiwan Semiconductor's Pre-Q3 Earnings: ETFs in Focus | Zacks: Taiwan Semiconductor's Pre-Q3 Earnings: ETFs in Focus | Reportify


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