• TSMC’s net income for the first quarter came in at NT$225.5 billion, showing a 9% year-on-year increase and surpassing estimates of NT$214.91 billion.
• The company’s gross margin was 53.1%, a slight increase from the previous quarter’s 53% and also above the estimated 53%.
• TSMC’s operating profit for the quarter was NT$249.02 billion, a 7.7% growth from last year and better than the expected NT$240.87 billion.
• The operating margin stood at 42%, slightly higher than the previous quarter’s 41.6% and the estimated 41.4%.
• Sales for the quarter reached NT$592.64 billion, marking a 17% year-on-year rise and beating the estimate of NT$583.46 billion.
• Quarter 1 saw the company’s capita expenditure (Capex) at a high of $5.77 billion.
• The current market sentiment around TSMC is mostly positive, with 34 buys, 1 hold, and no sells.
Taiwan Semiconductor (TSMC) on Smartkarma
Analysts on Smartkarma have provided positive coverage on Taiwan Semiconductor (TSMC). William Keating highlights how TSMC secured $6.6 billion in US CHIPS Act funding and plans to build a third fab in Arizona by 2030, reinforcing their strong financial performance in comparison to Intel. Patrick Liao‘s insights focus on the $6.6 billion deal between the US Department of Commerce and TSMC Arizona, minimal revenue impact from recent earthquakes, and updates on TSMC’s Japanese fabs. Additionally, Liao anticipates TSMC to receive around $5 billion from the US Chip Act, with optimistic outlooks for future growth and technology adoption. Vincent Fernando, CFA mentions TSMC’s increased capex orders in response to rising demand, along with other developments in Taiwan’s tech scene such as Nvidia’s conference and Samsung’s potential NAND flash price hike.
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 the Smartkarma Smart Scores, Taiwan Semiconductor (TSMC) shows promising long-term potential. With a Growth score of 4 and a Resilience score of 4, the company is positioned well for future expansion and able to withstand market challenges. Furthermore, TSMC shines in Momentum with a score of 5, indicating strong positive market trends.
Despite average scores in Value and Dividend at 2 each, TSMC’s overall outlook remains positive due to its robust Growth, Resilience, and Momentum scores. The company’s diversified services, including wafer manufacturing and design services, cater to a wide range of industries such as technology, communication, and automotive sectors.
Summary: Taiwan Semiconductor Manufacturing Company, Ltd. manufactures and markets integrated circuits, offering services in wafer manufacturing, design services, and more. Their ICs find application in various industries like technology, communication, automotive, and others.
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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