TSMC Reports $33.1B Q3 Revenue, AI Chips Account for 57%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
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Source: Fool
- Market Dominance: TSMC holds over 90% market share in AI chip manufacturing, positioning it as a key beneficiary as tech companies ramp up investments in AI infrastructure, thereby solidifying its leadership in the semiconductor industry.
- Strong Financial Performance: TSMC reported total revenue of $33.1 billion in Q3, with its high-performance computing (HPC) segment contributing 57% of this revenue, reflecting robust demand and growth potential in the high-end market.
- Margin Improvement: The company's gross margin increased from 57.8% to 59.5%, while operating margin rose from 47.5% to 50.6%, indicating its advantages in pricing power and cost control, which further enhance its financial health.
- Long-term Investment Value: With strong manufacturing capabilities for major tech companies, TSMC excels not only in AI chips but also in smartphone and computer chip production, making it a stock worth holding for the long term.
TSM
$298.8+Infinity%1D
Analyst Views on TSM
Wall Street analysts forecast TSM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSM is 348.25 USD with a low forecast of 290.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 296.950
Low
290.00
Averages
348.25
High
400.00
Current: 296.950
Low
290.00
Averages
348.25
High
400.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based company mainly engaged in the provision of integrated circuit manufacturing services. The integrated circuit manufacturing services include process technology, special process technology, design ecosystem support, mask technology, 3DFabricTM advanced packaging and silicon stacking technology services. The Company has completed the transfer and mass production of 5nm technology, and is engaged in the research and development of 3nm process technology and 2nm process technology. The product application range covers the entire electronic application industry, including personal computers and peripheral products, information application products, wired and wireless communication system products, servers and data centers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
