Taiwan Semiconductor Manufacturing Company Ltd. TSM is poised to release its fourth-quarter 2024 earnings on Jan. 16.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The company’s strategic focus on cutting-edge semiconductor technologies, combined with the surging global demand for artificial intelligence (AI) applications, positions it for robust financial results.
Click here to know how TSM’s overall fourth-quarter results are likely to be.
AI: The Catalyst for TSM’s Momentum
The rapid adoption of AI across industries like cloud computing, consumer electronics and data centers has fueled demand for high-performance chips. As the world’s largest contract chipmaker, Taiwan Semiconductor has been at the forefront of this revolution. Its leadership in advanced process nodes like 3-nanometer (nm) and 5-nm technologies is expected to have driven significant revenue growth in the fourth quarter.
Taiwan Semiconductor Manufacturing Company Ltd. Price and EPS Surprise
Taiwan Semiconductor Manufacturing Company Ltd. price-eps-surprise | Taiwan Semiconductor Manufacturing Company Ltd. Quote
During its third-quarter 2024earnings call Taiwan Semiconductor highlighted strong demand for its AI-focused products, including Chip-on-Wafer-on-Substrate advanced packaging solutions. This segment has seen consistent demand exceeding supply, reflecting the company’s critical role in powering AI and high-performance computing applications.
For the fourth quarter, Taiwan Semiconductor has projected revenues between $26.1 billion and $26.9 billion, representing a sequential increase of 12.8% at the midpoint. This growth is attributed to TSM’s ramp-up of 3-nm production, positioning it to capitalize on AI-driven opportunities.
Robust Customer Base Fuels TSM’s Growth
Taiwan Semiconductor’s ability to attract and retain top-tier customers underscores its dominance. Its client roster includes industry leaders like NVIDIA Corporation NVDA, Advanced Micro Devices, Inc. AMD, Intel Corporation INTC, Qualcomm and Broadcom, with 10 major customers contributing 70% of its 2023 revenues.
This strong customer alignment is likely to have driven revenue growth for the quarter, particularly given NVIDIA’s demand for AI chips and Advanced Micro Devices’ next-gen products. Growing relationships with these behemoths are expected to have Taiwan Semiconductor’s top-line growth in the to-be-reported quarter.
Nonetheless, rising operational costs, especially from its overseas expansions along with higher electric prices in Taiwan are anticipated to have negatively impacted this Zacks Rank #3 (Hold) company’s profitability in the fourth quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Free: 5 Stocks to Buy As Infrastructure Spending Soars
Trillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.
In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.
Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.
Intel Corporation (INTC) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report