Taiwan's TSMC wins across the board in financial results! Net profit increases by 54%, a "reverse move" in the semiconductor industry.
The world's largest semiconductor contract manufacturer, $Taiwan Semiconductor (TSM.US)$On the 17th, it announced the earnings reports for July to September (Q3).Continued strong focus on AI demand.is turning out to be.Both revenue and net profit exceeded market expectations, reaching a record high on a quarterly basis.となった。Revenue and profits have increased for three consecutive quarters.Samsung Electronics of South Korea and $Intel (INTC.US)$While competitors like South Korea's Samsung Electronics and American companies face challenges in mass producing and securing orders for advanced products, TSMC's dominance in semiconductor production is evident as it seizes strong demand for AI. TSMC is the largest player in semiconductor contract manufacturing with a 60% global market share.
ASML suggests a potential slowdown in global semiconductor manufacturing growth as their order intake in the third quarter was only about half of the expected average, while TSMC's short- and medium-term revenue outlook remains strong.
Following the positive earnings report, TSMC reached the $200 level in after-hours trading on the 17th.Surging over 8%.and has reached the $200 level.It is setting a new all-time high.。
■ Sales, net profit, and gross margin all exceeded expectations as sales of advanced semiconductors for AI and the latest smartphones were strong.
● $NVIDIA (NVDA.US)$artificial intelligence (ai) chip sales are strong, morgan stanley's third-quarter profits were offset by the poor performance of the mobile chip sectorincreasing by 54%, a significant increaseThe US economy further recovered, and the GDP growth rate reached 3.85% in 2004.
The sales ratio of advanced processes in TSMC's third quarter increased from 67% in the previous quarter to 69%.In the third quarter of TSMC, the sales ratio of advanced processes increased from 67% in the previous quarter to 69%.Of these, the 3-nanometer and 5-nanometer processes accounted for a total of the third-quarter sales.52%In contrast, BYD is rapidly expanding the sales of plug-in hybrid cars, which can also be charged.
Raised the growth rate forecast of revenue in 2024.
Possible increase in capital investment next year.
● $NVIDIA (NVDA.US)$artificial intelligence (ai) chip sales are strong, morgan stanley's third-quarter profits were offset by the poor performance of the mobile chip sectorincreasing by 54%, a significant increaseThe US economy further recovered, and the GDP growth rate reached 3.85% in 2004.
The sales ratio of advanced processes in TSMC's third quarter increased from 67% in the previous quarter to 69%.In the third quarter of TSMC, the sales ratio of advanced processes increased from 67% in the previous quarter to 69%.Of these, the 3-nanometer and 5-nanometer processes accounted for a total of the third-quarter sales.52%In contrast, BYD is rapidly expanding the sales of plug-in hybrid cars, which can also be charged.
Raised the growth rate forecast of revenue in 2024.
Possible increase in capital investment next year.
Details are as follows.
・revenueIncreased by 39% to 759.6 billion Taiwan dollars compared to the same period last year. Exceeded the market expectation of 751.06 billion Taiwan dollars.
・Net profitIt increased by 54% year-on-year to 325.2 billion Taiwan dollars, surpassing market expectations of 299.3 billion Taiwan dollars.
・gross marginreached 57.8%, an increase of 4.6 percentage points from the previous period. It exceeded market expectations (54.8%) and the forecast for the second quarter (51%-53%).
・Operating profitreached 360.77 billion Taiwan dollars, exceeding the expected 330.8 billion Taiwan dollars, and increased by 58% compared to the same period last year.
・In the third quarter,of the local advertising revenue.it slightly exceeded 6.4 billion US dollars in the third quarter, and 6.36 billion dollars in the second quarter.
・Net profitIt increased by 54% year-on-year to 325.2 billion Taiwan dollars, surpassing market expectations of 299.3 billion Taiwan dollars.
・gross marginreached 57.8%, an increase of 4.6 percentage points from the previous period. It exceeded market expectations (54.8%) and the forecast for the second quarter (51%-53%).
・Operating profitreached 360.77 billion Taiwan dollars, exceeding the expected 330.8 billion Taiwan dollars, and increased by 58% compared to the same period last year.
・In the third quarter,of the local advertising revenue.it slightly exceeded 6.4 billion US dollars in the third quarter, and 6.36 billion dollars in the second quarter.
Looking at the details of revenue, TSMC's revenue from advanced processes in the third quarter increased from the previous quarter. Among them, the revenue of the 3nm and 5nm processes together accounted for the revenue in the third quarter.52%In contrast, BYD is rapidly expanding the sales of plug-in hybrid cars, which can also be charged.
According to analysts,TSMC's strategy is focused on 3nm rather thanThe price is 33% higher.Shift to 2nm.In addition, coupled with the improvement in utilization rate, driving the expansion of profit margin in 2025 and 2026.It is expected to lead the profit growth.。
At the platform level, the ai chip contract manufacturing business continues to maintain strong momentum, and the smartphone business is further recovering due to the increase in iPhone shipments. The revenue share of HPC (High Performance Computing) is the highest, reaching 51%, but the share has slightly decreased from the previous quarter and compared to the previous period, it has increased by 11%.increased by 11%.The sales share of the smartphone business is34%accounts for etc.
● Fourth quarterrevenueis expected to be 26.1 billion to 26.9 billion dollars, compared to the market estimate of 24.94 billion dollars. It is expected to increase from 19.62 billion dollars in the same period last year.
● Fourth quartergross marginCompared to the market's financial estimates of 54.7%, it is expected to be in the range of 57-59%.
● For 24 years,Infrastructure investmentRegarding , it is expected to be around 30 billion dollars in line with the previous estimate of 30 billion to 32 billion dollars.
● For 24 years,Upward revision of revenue forecast.。
● Fourth quartergross marginCompared to the market's financial estimates of 54.7%, it is expected to be in the range of 57-59%.
● For 24 years,Infrastructure investmentRegarding , it is expected to be around 30 billion dollars in line with the previous estimate of 30 billion to 32 billion dollars.
● For 24 years,Upward revision of revenue forecast.。
Wei Zhejia, the CEO, has predicted a growth of about 30% in this year's revenue. It significantly exceeds the previous estimate of around 20%. The demand for CoWoS is exceeding supply, and production capacity is expected to triple in fiscal years 2024 and 2025.
The AI demand is real, and the overall chip demand is stabilizing and starting to improve.
In fiscal year 2024, revenue from server AI processors is expected to grow by more than three times, accounting for 15-19% of total revenue.
●In 2025,Significant likelihood of increased capital investment. The chances of increased capital investment are high.
Wei Zhejia, CEO, explained that the equipment investment of 25 years is very likely to exceed this year. This year's equipment investment is expected to slightly exceed 30 billion US dollars.
The increase in equipment investment always leads to an increase in growth opportunities, and it was stated that the growth over the next five years will be "healthy".
The demand for 2nm chips to be mass-produced in the future is stronger than that of 3nm.
Regarding the advancement of cutting-edge chips, according to TSMC, the demand for 2nm chips to be mass-produced in the future is stronger than that of 3nm. The demand for the N2 process is expected to be very large, with unprecedented demand anticipated, and more production capacity is allocated to N2 than N3.
TSMC expects that the gross margin will be diluted by 2-3% by 2025 as overseas wafer fabs are gradually put into operation. Nevertheless, next year is expected to be a year of healthy growth and favorable capacity utilization.
Regarding other rumors about TSMC's acquisition of Intel, CEO Wei Zhejia stated, "There are no plans to acquire Intel's wafer fabs."
Regarding other rumors about TSMC's acquisition of Intel, CEO Wei Zhejia stated, "There are no plans to acquire Intel's wafer fabs."
Bloomberg Intelligence analyst, Charles Shum, stated that although ASML, the largest equipment supplier, reported third-quarter orders that were only half of expectations, suggesting a potential slowdown in global manufacturing capacity growth, TSMC's medium to long-term revenue outlook remains robust. $NVIDIA (NVDA.US)$、 $Advanced Micro Devices (AMD.US)$、 $Apple (AAPL.US)$、 $Qualcomm (QCOM.US)$Strong demand for TSMC's 2-nanometer and 3-nanometer technologies is offsetting this. TSMC's excellent production yield, improved productivity of EUV equipment, and leadership in the 2.5D and 3D packaging fields will provide further sales support.
According to analysts at Morgan Stanley, in a research note prior to TSMC's earnings report, TSMC is expected to achieve a 15% to 20% annual growth rate over the next 5 years, driven by demand for AI chips from NVIDIA and outsourcing by integrated device manufacturers like Intel.Analysts at Morgan Stanley mentioned in a research note before TSMC's earnings report that over the next 5 years, TSMC will benefit from demand for AI chips from NVIDIA and outsourcing by integrated device manufacturers like Intel, resulting in an average annual growth rate of 15% to 20%.Stated the possibility of continuing to record high revenues and continuing to expand.
Analysts stated that TSMC's performance is affected by ASML's poor performance in the chip industry.Dispelled concerns about the chip industry.Stated.
"TSMC is a dominant company. It is the only company with advanced process technology that companies like Intel and Samsung do not have," the statement said.
Since the beginning of the year, TSMC's stock price has risen by over 70%, surpassing many of Asia's leading high-tech companies. This reflects high expectations for the company's artificial intelligence (AI) business. The company emphasizes the continued spending outlook on AI infrastructure by companies like Microsoft (MSFT.US) and Amazon (AMZN.US). The steady adoption of AI also contributes to boosting the sales of iPhones and other electronic products.
Excess production capacity in datacenters and geopolitical risks have made some investors uneasy. This week, reports emerged suggesting that Biden administration officials are considering restricting the sale of leading U.S. AI chips, including NVIDIA, in certain countries. However, TSMC seems to still be exploring rapid international expansion. According to Taiwanese officials, the company is planning to focus on the AI chip market and is moving forward with plans to establish additional factories in Europe, following construction progress in Japan, Arizona, and Germany.
Source: Wall Street Journal, Bloomberg, moomoo
This article uses automatic translation in part.
moomoo news anchor Sherry
This article uses automatic translation in part.
moomoo news anchor Sherry
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
