Tag Archives: TSM

Business

TSM Stock: Taiwan Semiconductor Crushes Q1 Targets

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Taiwan Semiconductor Manufacturing (TSM), the world’s top chip foundry, on Thursday smashed expectations for the first quarter and guided higher for the current period. But TSM stock wavered on the news.




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The company, better known as TSMC, earned $1.40 per U.S. share on sales of $17.57 billion in the March quarter. Analysts had expected TSMC to earn $1.27 a share on sales of $16.74 billion, according to FactSet. On a year-over-year basis, Taiwan Semi’s earnings rose 47% while sales increased 36%.

For the second quarter, TSMC forecast revenue of $17.6 billion to $18.2 billion. The midpoint of $17.9 billion tops Wall Street’s consensus estimate of $17.33 billion.

Taiwan Semi predicted a gross profit margin of 56% to 58% in the June quarter. That’s up from 55.6% in the March quarter.

TSM Stock Seesaws

In morning trading on the stock market today, TSM stock initially climbed 3% but then reversed. In recent trades, it was down 1.5% to 100.

“Our first-quarter business was supported by strong HPC (high-performance computing) and automotive-related demand,” Chief Financial Officer Wendell Huang said in a news release.

He added, “Moving into second quarter 2022, we expect our business to continue to be supported by HPC and automotive-related demand, partially offset by smartphone seasonality.”

In the first quarter, shipments of 5-nanometer chips accounted for 20% of total wafer revenue and 7-nanometer chips accounted for 30%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 50% of total wafer revenue. Circuit widths on chips are measured in nanometers, which are one-billionth of a meter.

Taiwan Semi Gaining From Technology Shifts

Meanwhile, Wedbush Securities analyst Matt Bryson reiterated his outperform rating on TSM stock after the report.

“We continue to see TSMC benefiting from structural shifts in technology innovation requiring increased semiconductor content (e.g., 5G, AI, etc.),” he said in a note to clients. “The resulting elevated growth rate for semis combined with TSMC’s ongoing share gains should drive accelerated growth for TSMC over the intermediate term.”

Further, TSMC has been taking market share from Intel (INTC), Bryson said.

TSM stock ranks No. 17 out of 44 stocks in IBD’s semiconductor manufacturing industry group, according to IBD Stock Checkup. It has a middling IBD Composite Rating of 69 out of 99. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

Since hitting a record high of 145 on Jan. 13, TSM stock has fallen 30% as of Wednesday’s close of 101.50.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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Business

TSM Stock: Taiwan Semiconductor Beats Q4 Targets

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Taiwan Semiconductor Manufacturing (TSM), the world’s largest chip foundry, on Thursday beat analyst estimates for the fourth quarter. TSM stock popped higher on the news.




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Taiwan Semi earned $1.15 per U.S. share in the December quarter, up 19% from the year-earlier period. Analysts expected earnings of $1.12 a share, according to FactSet. The company’s sales increased 24% to $15.74 billion, also topping views.

For the current quarter, Taiwan Semi expects to generate revenue of $16.6 billion to $17.2 billion. The midpoint of $16.9 billion topped analyst estimates for $15.7 billion.

In morning trades on the stock market today, TSM stock jumped 8.3%, near 143.25. At the opening bell, TSM stock broke out of a cup-with-handle base at a buy point of 135.60, according to a daily chart on IBD MarketSmith. TSM stock also cleared a secondary buy point of 142.29 from a saucer base on a weekly MarketSmith chart.

Sales Driven By Industry-Leading Chips

Taiwan Semi makes chips for fabless semiconductor firms such as Apple (AAPL), AMD (AMD), Nvidia (NVDA) and Qualcomm (QCOM).

“Our fourth-quarter business was supported by strong demand for our industry-leading 5-nanometer technology,” Chief Financial Officer Wendell Huang said in a news release. “Moving into first quarter 2022, we expect our business to be supported by HPC (high-performance computing) related demand, continued recovery in the automotive segment, and a milder smartphone seasonality than in recent years.”

In the fourth quarter, shipments of 5-nanometer chips accounted for 23% of total wafer revenue. Meanwhile, 7-nanometer chips accounted for 27% of wafer revenue. Manufacturers measure circuit widths on chips in nanometers, or one-billionth of a meter.

Smartphone chips accounted for 44% of Taiwan Semi’s revenue in the December quarter. High-performance computing chips made up 37% of revenue in the period.

Taiwan Semi’s results point to a “stronger for longer” chip cycle, Needham analyst Charles Shi said in a note to clients. He raised his price target on TSM stock to 152 from 138 and reiterated his buy rating.

TSM Stock In Highly Rated Industry Group

Taiwan Semi plans to spend $40 billion to $44 billion in 2022 to expand and upgrade its production capacity amid a global chip shortage. In 2021, it spent $30.04 billion on capital expenditures.

The heightened spending on semiconductor equipment is positive news for chip-gear makers such as ASML (ASML), Applied Materials (AMAT) and Lam Research (LRCX).

TSM stock ranks eighth out of 40 stocks in IBD’s semiconductor manufacturing industry group. It has an IBD Composite Rating of 97 out of 99, according to IBD Stock Checkup. The Composite Rating scores a stock’s key growth metrics against all other stocks regardless of industry group.

The chipmaking group ranks No. 12 out of 197 industry groups that IBD tracks. Choosing highly rated stocks from leading industry groups in a confirmed stock market uptrend generally increases your chances of making profits in growth stocks.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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Technology

Riot Games investigates TSM Reginald over allegations of bullying

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Source: LoL Esports

According to a report by WIRED, the famous esports leader and owner of TSM Andy “Reginald” Dinh is currently under investigation by Riot Games, over accusations of bullying in the workplace.

 

Riot Games reportedly launched an investigation on the esports veteran, after multiple current and former workers at TSM claimed that Reginald had bullied and verbally abused them. At a similar time, TSM confirmed that they had launched an investigation of their own.

 

The news comes after years of criticism from the League of Legends community as well as esports figures over Reginald’s behavior towards those in his company.

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Business

Dow Jones Today, Futures Rise As Jobless Claims Hit Pandemic Low; TSM Earnings Lift Chip Stocks; UnitedHealth, Walgreens Rally

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Stock futures shifted sharply higher Thursday, boosted by earnings reports and by a notable improvement in weekly jobless claims. Taiwan Semiconductor (TSM) and Bank of America (BAC) were early leaders on earnings news. On the Dow Jones today, UnitedHealth Group (UNH) led after reporting positive third-quarter results.




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Dow Jones futures rumbled 0.9% higher, while S&P 500 futures also swung 0.9% above fair value. Nasdaq 100 futures racked up a 1.1% gain on today’s stock market, enough to push the index into positive territory for the week.

Chip equipment makers led the Nasdaq 100, boosted by strong third-quarter results from Taiwan Semiconductor. ASML Holdings (ASML) ran at the top of the list with a 3.1% gain. Applied Materials (AMAT) and KLA (KLAC) gained more than 2%, Lam Research (LRCX) gained 1.9%. The VanEck Semiconductor ETF (SMH) climbed 1.7% in premarket trade.

Taiwan Semi jumped 3.9% following its third-quarter earnings report in which it raised guidance for the current quarter. The stock is looking to snap a five-week decline.

Vaccine maker Moderna (MRNA) ran strong, up 2.2%, ahead of a vote among advisors to the Food And Drug Administration regarding approval of a third shot of the company’s Covid-19 vaccine. Moderna shares are struggling to climb off the bottom of a nine-week correction.

Also receiving an FDA boost, biotech Regeneron Pharmaceuticals (REGN) jumped 2.7%, after the agency reportedly accepted the company’s application for its monoclonal antibody treatment for non-hospitalized Covid-19 patients. Regeneron shares are testing 200-day support after a steep, four-week breakdown.

Network storage leader NetApp (NTAP) jumped more than 3% to lead the S&P 500. Shares are technically in a buy range on a rebound from their 10-week moving average.

United Parcel Service (UPS) powered up 2.7%. Stifel upgraded the stock to buy, from hold, and raised its price target to 224, from 210.

Dow Jones Today: Walgreens, UnitedHealth Earnings

UnitedHealth Group and Walgreens Boots Alliance (WBA) topped the Dow Jones today, running strong on quarterly earnings news.

UnitedHealth added 2.6%, positioning the stock for a possible test of resistance at its 50-day moving average. The managed-care giant cleared analysts’ third-quarter revenue and earnings targets by narrow margins, and boosted its full-year earnings guidance in line with Wall Street expectations.

UnitedHealth stock is rebounding from a test of support at its 200-day line. It faces potential resistance at its 50-day moving average as it attempts to move up the right side of what IBD MarketSmith analysis plots as a flat base.

Walgreens rallied 2.2%, after reporting that fiscal fourth-quarter earnings and revenue cleared estimates. U.S. sales rose 6.6% to $28.8 billion. International sales soared 62%, to $5.5 billion.

Walgreens stock is locked in a six-month consolidation, trading below both its 10-week and 40-week moving averages.

IBD 50: Callon Pete, Diamondback Lead

On the IBD 50 list, Callon Petroleum (CPE) and Diamondback Energy (FANG) were early leaders as oil prices leaned toward a sixth-straight daily advance.

Callon ended Wednesday down more than 7% since the start of the week, pulling back after briefly topping a 60.61 buy point. The pullback went well beyond the 8% loss limit that triggers the automatic sell rule, ejecting investors and sending a caution flag about buying while the market outlook reads “in correction.”

Diamondback has been less didactic, breaking out past a 102.63 buy point on Oct. 4. Shares are narrowly extended above the cup base entry, after finding support at its short-term 10-day moving average on Wednesday.

Econ News: Jobless Claims Fall, Oil Rises

The Labor Department reported first-time applications for unemployment assistance decreased to 293,000 in the week ended Oct. 9. That marked a 10% drop vs. the prior week, and below economist projections for 320,000 claims.

The second-straight decline in weekly applications, it was also the lowest tally since March 2020, just as the pandemic got underway.

The Energy Information Administration reports weekly natural gas inventories at 10:30 a.m. ET, and weekly oil supply estimates at 11 a.m. ET.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Oil prices swung higher, with West Texas Intermediate futures up 1.2%, trading above $81 a barrel and pushing to add an eighth week to their advance. Copper rose 1.5%, after posting a 4.6% surge on Wednesday. Bond yields were largely flat after two days of strong declines, with the 10-year Treasury yield unchanged at 1.54%.

Meanwhile, bitcoin surged nearly 5% to trade above $57,500, according to CoinDesk. The cryptocurrency moved as high as $58,518 and as low as $54,554 over the prior 24 hours.

Earnings: Bank Of America, Morgan Stanley Climb

Financials were in motion on earnings news, after a tough day of trading on Wednesday.

Bank of America popped 2.7%, trading high on the S&P 500, after reporting a better-than-expected 67% surge in earnings. Revenue also topped analyst estimates, and asset quality improvements spurred a reserve release of $1.1 billion. Bank of America stock is pulled back to test support at its 21-day exponential moving average, after rekindling a failed August breakout.

Morgan Stanley (MS) rallied 2.5% as a 28% third-quarter earnings gain swept past analyst forecasts. Revenue rose 20%, also above forecasts, as earnings received a boost from a $1.7 billion release of reserves banked against possible defaults.

A late-September spike to new highs interrupted Morgan Stanley’s basing pattern. Shares are currently consolidating below their 10-week moving average.

Nasdaq, S&P 500, Dow Jones Today

The Dow Jones today heads for the starting bell with a 1.1% loss for the week. The S&P 500 is down 0.6%. For the month, the Dow is up 1.6%. The S&P 500 has a 1.3% gain.

Meanwhile, the Nasdaq composite is down less than 0.1%. If the index holds near current levels, it would mark a second weekly close within 0.1% of the prior week. On a weekly chart, that shows as a three-weeks-tight pattern, a bullish marker usually found in stocks.

The Nasdaq and the S&P 500 both snapped three-day retreats on Wednesday. Both now have found five days of support at their short-term 10-day moving averages, but remained well below the longer-term 50-day moving averages.

The Dow remains on the fence, with a flat finish Wednesday that essentially added a fourth down day to its chart. The Dow, however, erased earlier losses. The stock market market outlook is still “in correction,” but the rally attempt, constructed upon the Oct. 4 lows for the Nasdaq and S&P 500, remains in effect.

For more detailed analysis of the current stock market and its status, study the Big Picture.

A follow-through day — a big gain by the Nasdaq or S&P 500 in rising volume — is needed to launch a new uptrend and kick the market outlook over to “confirmed uptrend.” Until that occurs, the best place for investors to be is in cash, building watchlists and waiting for the shift in market status.

Alan R. Elliott is on Twitter @IBD_Aelliott

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Technology

World’s Largest Chip Maker to Raise Prices, Threatening Costlier Electronics

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The world’s largest contract chip maker is raising prices by as much as 20%, according to people familiar with the matter, a move that could result in consumers paying more for electronics.

Taiwan Semiconductor Manufacturing Co. plans to increase the prices of its most advanced chips by roughly 10%, while less advanced chips used by customers like auto makers will cost about 20% more, these people said. The higher prices will generally take effect late this year or next year, the people said.

Apple Inc. is one of TSMC’s largest customers and its iPhones use advanced microprocessors made in TSMC foundries. It couldn’t be determined how much more Apple would pay.

A TSMC spokeswoman declined to comment on prices but said the company works closely with customers. An Apple spokeswoman didn’t immediately respond to a request for comment.

The price increases come in the wake of a global semiconductor shortage that has affected Apple and most car makers, including General Motors Co. and Toyota Motor Corp. In August, GM said it had to idle three factories in North America that make large pickup trucks, the company’s biggest moneymaker. Last week, Toyota said it would curb production by 40% in September.

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Business

Fire at Giant Auto-Chip Plant Fuels Supply Concerns

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TOKYO—A fire at a factory of one of the world’s leading auto chip makers has added to the troubles of car makers that already have slashed production because of a semiconductor shortage.

The fire Friday left a swath of charred equipment in the factory owned by a subsidiary of Renesas Electronics Corp. in Hitachinaka, northeast of Tokyo. The company said it would take at least a month to restart the damaged operations.

Shares of Japan’s three leading car makers— Toyota Motor Corp. , Nissan Motor Co. and Honda Motor Co. —all fell by more than 3% on Monday, worse than the overall market, while Renesas shares were down 4.9%.

Renesas said heat from an electrical problem inside a single piece of equipment caused the fire and contaminated clean rooms needed to make semiconductors. It said two-thirds of the chips made at the fire-affected factory were automotive chips.

Renesas’s chief executive, Hidetoshi Shibata, said Sunday the impact on global chip supplies would be significant. Mariko Semetko, a credit analyst at Moody’s Japan, said the fire was likely to damp the recovery of global auto production this year, while auto makers said they were still assessing the impact.

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