The Center of Global Chip Shortage: TSM Q3 2021 Highlights
On October 14, $Taiwan Semiconductor (TSM.US)$, the global chip giant and a key supplier to $Apple (AAPL.US)$, released its Q3 2021 earnings thatbeat the estimates, and the management gives anoptimistic outlook, following a surge of 2.3% in stock price.
Being the center of global chip shortage, TSM has many highlights in Q3 earnings. Let's seehow does its earnings affect its stock price.![]()
Financial Highlights
Q3 revenueT$414.7 bln, up 16.3%YOY.
Q3netincomeT$156.3 bln,up13.8% YoY, beating the T$149 bln market estimate.
Operating & Business Highlights
The company's operating profit margin fell 0.9 percentage point to 41.2%, due to higher costs of raw materials.
Revenue from customers in North America made up 65% of its third-quarter revenue.
The company plans to invest US$100 billion over the next three years to increase production capacity.
Due to robust demand from automakers and tech companies, TSMC plans to set up a plant in Japan that will use older chipmaking technology and begin producing by 2024.
Outlook
According to the management,“Moving into fourth quarter 2021, we expect our business to be supported by strong demand for our industry-leading 5nm technology.” Management expects the overall performance for fourth quarter & 2021 to be as follows:
TSMC lifts 2021 revenue growth target to about 24%;
Gross profit margin is expected to be between 51% and 53%;
Operating profit margin is expected to be between 39% and 41%.
Click to see the original earnings report>>
Click to see the original earnings report>>
What's your thought on TSM Q3 earnings? Is now a good time to buy or sell? Which way will the stock price go?
We can't wait to see your comments.
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carririlin : Demand exceeds supply, indicating a large market demand. I am very optimistic about semiconductors
Johnnie Worker : My bet is obvious. The semiconductor is the future!
Zhanggu Sun : The future is still very promising
Alfred1007 : the demand is there, but without element of surprise, I guess it will not have strong uptrend. It lacks of a beautiful story to tell the investors..
High Profit Low Loss : Demand is there, deliveries are yet to be seen.
Vixley : The market demand is too great, and the number of orders booked by enterprises has increased. How could it not rise?
Kes Tan :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Jimmyccb : Ok
Kian Yong66 : It's been a long time of sideways trading, it's time for violence to rise