Taiwan Semiconductor Q1 Earnings Preview: Earthquake Impact, New Plants, 'Pick-And-Shovel' Play For AI Puts Stock In Spotlight
Portfolio Pulse from Chris Katje
Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) is set to report Q1 earnings with expected revenue of $18.395 billion and EPS of $1.32, surpassing last year's figures. Analysts highlight the company's resilience despite an earthquake in Taiwan affecting production, with missed sales anticipated to recover by Q3. TSM remains a 'pick-and-shovel' play for AI, with significant investments in new plants in Arizona and Germany. The company's role as a key supplier for Apple and NVIDIA underscores its importance in the tech ecosystem.
April 17, 2024 | 6:29 pm
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POSITIVE IMPACT
As a key supplier for Apple, TSM's Q1 performance and future outlook could provide insights into Apple's product demand and supply chain stability.
Given TSM's role as a major supplier, its Q1 results and commentary on demand could indirectly impact Apple's stock by providing insights into the health of its supply chain and potential for future product releases.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75
POSITIVE IMPACT
NVIDIA, as another significant partner of TSM, may see indirect effects from TSM's Q1 results, particularly regarding AI chip production and supply.
TSM's performance and future guidance, especially in AI chip production, are crucial for NVIDIA, potentially affecting its stock by indicating the stability and growth of its supply chain for critical components.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75
POSITIVE IMPACT
TSM is expected to report strong Q1 earnings with a positive outlook despite temporary setbacks from an earthquake. Investments in new plants and strategic importance to tech giants like Apple and NVIDIA position it well for future growth.
TSM's expected revenue and EPS growth, despite the earthquake's impact, signal strong demand and operational resilience. The strategic expansions in Arizona and Germany, coupled with its critical role for Apple and NVIDIA, suggest a positive short-term impact on its stock.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100