18 January 2024

TSMC Q4 Profit Drops, Revenues Flat, But Stock Up In Pre-Market

During the firm’s earnings call on Thursday, CEO C.C. Wei acknowledged that 2023 was a “challenging year for the global semiconductor industry” because of macroeconomic conditions and an inventory adjustment cycle.

In pre-market activity on the NYSE, TSMC shares were trading at $108.78, up 5.7 percent.
TSMC beats profit and revenue expectations in the fourth quarter

TSMC beats profit and revenue expectations in the fourth quarter


. . .Here are TSMC’s fourth-quarter results versus LSEG consensus estimates:

  • Revenue: 625.53 billion New Taiwan dollars ($19.62 billion), vs. NT$618.31 billion expected
  • Net income: NT$238.71 billion, vs. NT$225.22 billion expected

TSMC reported revenue slipped 1.5% from a year ago to NT$625.53 billion, while net income dropped 19.3% from a year ago to NT$238.71 billion. That compares with TSMC’s guidance for fourth-quarter revenue between $18.8 billion and $19.6 billion.

. . .“We expect 2024 to be a healthy growth year for TSMC, supported by continuous strong ramp-up of our industry-leading three nanometer technologies, strong demand for the five nanometer technologies and robust AI-related demand,” said Wei.

TSMC expects first-quarter revenue to come in between $18 billion and $18.8 billion this year.

But he also flagged persisting macroeconomic headwinds that could weigh on consumer sentiment and market demand.

“TSMC’s strong ramp-up in N3 and AI applications positions it as a major beneficiary in AI semiconductors,” Brady Wang, associate director at Counterpoint Research, said Tuesday. N3 refers to TSMC’s most advanced node, which produces 3-nanometer chips."  

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