[ad_1]
Taiwan Semiconductor Manufacturing (TSM), the world’s largest contract chip maker, beat expectations for fourth-quarter earnings on Thursday but fell short of sales. It also underperforms the current quarter’s guidance as demand for chips weakens. Still, TSM stock rose in early trading.
X
Taiwan Semi, better known as TSMC, earned $1.82 per US share on sales of $19.93 billion in the December quarter. Analysts surveyed by FactSet had predicted TSMC’s profit would be $1.80 for him and revenue for him would be $20.6 billion. Year-over-year, TSMC’s revenue increased 57% and revenue increased 30%.
TSMC expects revenue of $16.7 billion to $17.5 billion for the current quarter. The midpoint of $17.1 billion fell short of Wall Street’s target of $17.65 billion. Sales in the year-ago quarter were $16.49 billion. The company’s guidance suggests first-quarter sales grew only 1% year-over-year.
In today’s stock market morning trading, TSM’s share price rose 5% to 85.85.
Taiwan Semiconductor manufactures chips for fabless semiconductor companies such as: AMD (AMD), apple (AAPL), NVIDIA (NVDA), Qualcomm (QCOM), etc.
Weakening chip demand
“Our fourth quarter business was dampened by soft end-market demand and customer destocking despite continued growth in our industry-leading 5-nanometer technology,” said Chief Financial Officer. author Wendell Huang said in a news release.
“As we enter the first quarter of 2023, as overall macroeconomic conditions remain weak, we expect end-market demand to remain soft and our business to be further impacted by further destocking by our customers. ”
Circuit widths on a chip are measured in nanometers, which are billionths of a meter.
In the fourth quarter, 5-nanometer chip shipments accounted for 32% of TSMC’s total wafer revenue, while 7-nanometer chip shipments accounted for 22%. TSMC defines 7-nanometer and below nodes as advanced technology.
TSMC pointed to softening demand for data center chips. Meanwhile, demand for chips for smartphones and consumer electronics remains weak.
TSM Equity Analyst Speaks Out
The company expects low-single-digit growth in 2023, suggesting that the second quarter could bottom out earnings for the year.
“TSMC’s 2023 guidance is in range and may be slightly above expectations of the average buy-side investor,” Needham analyst Charles Shi said in a note to clients. Stated.
Shi reiterated his buy rating on TSM stock after the report. He has a price target of 110 on his TSM stock.
Susquehanna Financial Group analyst Mehdi Hosseini called the fourth quarter report a “mixed bag at best.” He maintained a neutral rating on his TSM stock.
“I doubt TSMC provided enough guidance or commentary to completely de-risk consensus forecasts,” Hosseini said in a note.
According to the IBD Stock Checkup, TSM’s stock ranks 10th out of 32 stocks in IBD’s semiconductor manufacturing group. The overall IBD rating is 84 out of 99.
Follow Patrick Saitz on Twitter. @IBD_PSeitz For more articles on consumer technology, software and semiconductor stocks, please visit here.
You may also like:
Here’s why top analysts cut Apple stock’s price target by nearly 8%
Impinj shares rock after chipmaker raises fourth-quarter outlook
Lidar, Radar and Camera Vendors Fight to Be the Eyes of Autonomous Vehicles
See stocks on leader’s list close to buy point
MarketSmith: Surveys, charts, data and coaching all in one place
[ad_2]
Source link
