Apple, Nvidia Supplier TSMC Records 19% Q4 Profit Drop But Exceeds Market Expectations
Portfolio Pulse from Benzinga Neuro
Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) reported a 19% drop in Q4 net profit to $7.6 billion, beating market expectations. Revenue decreased slightly by 1.5% to $19.62 billion, within the forecast range. Full-year capital expenditure was $30.45 billion, below the $32 billion projection for 2023. TSMC's shares have risen 32% in the past year despite industry challenges and the U.S.-China chip dispute. The company's performance is significant due to its role as a supplier to Apple Inc (NASDAQ:AAPL) and NVIDIA Corp (NASDAQ:NVDA).
January 18, 2024 | 7:38 am
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
As a key TSMC customer, Apple may experience indirect effects from TSMC's earnings, but the direct impact on AAPL's stock is likely minimal in the short term.
While TSMC's performance is a positive sign for its operations, it does not directly translate to immediate financial implications for Apple, thus the neutral score.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
NVIDIA, as a TSMC client, may see indirect benefits from TSMC's earnings stability, but the direct impact on NVDA's stock is likely minimal in the short term.
TSMC's earnings report may positively influence investor perception regarding supply chain stability for NVIDIA, but it doesn't directly affect NVIDIA's financials in the short term.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
TSMC exceeded market expectations with a smaller than anticipated profit drop and revenue decline, indicating resilience in a challenging market.
TSMC's better-than-expected earnings report and its status as a leading chipmaker could lead to positive investor sentiment in the short term, potentially driving the stock price up.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100