Earnings Digest | TSMC's valuation might just hit record highs!

$Taiwan Semiconductor Manufacturing(TSM)$ just announced their June sales figures: a whopping NT $207.87 billion, up 32.9% from last year.

In the April-June period, TSMC's sales totaled NT $673.5 billion, up 40% from a year earlier and exceeding analyst expectations of NT $651.77 billion:

After this bombshell, TSMC's stock shot up nearly 3% in after-hours trading at Tiger Securities.

Mark your calendars for July 18th (next Thursday), folks! TSMC will release their Q2 earnings report before the U.S. market opens. When more detailed financial data and performance guidance will be announced, is expected to have a greater impact on TSMC and semiconductor future trends.

TSMC, the global largest chip-making giant, practically owns the AI chip market with their cutting-edge manufacturing tech!

As $NVIDIA Corp(NVDA)$ 's AI GPU grabs TSMC's production capacity, resulting in chip shortages, the market has repeatedly reported that TSMC has raised prices!

In Q1 alone, TSMC's brand-new 3nm tech made up 9% of their revenue. With 5nm and 7nm tech previously dominating around 30%, imagine the sky-high potential for 3nm!

As these advanced processes bring in more cash, TSMC's profits keep climbing. Before 7nm hit mass production, their profit margin topped out around 50%. But now, with 5nm and 3nm rocking the scene, their margin's nearly 60% and counting!

According to media reports, TSMC will start trial production of 2nm semiconductors at its Baoshan plant next week, and it is expected to mass produce them in 2025, or be the first to be applied to Apple's iPhone 17 A19 chip.

With these cutting-edge chips raking in the big bucks, TSMC's valuation is soaring. Before 7nm went big, their P/B ratio hovered around 3x. Then boom — during the semiconductor bull market of 2021, it rocketed past 9x!

Currently, TSMC's P/B ratio sits at 7.5x, with room to grow. Brace yourselves, AI-driven bull market fans — TSMC's valuation might just hit record highs!

On Monday, TSMC's market cap on the U.S. stock market briefly topped a cool trillion dollars. If next Thursday's earnings report beats expectations, that trillion-dollar milestone could become their new throne!

# Q2 Earnings Kickoff: Will Banks Support the Market?

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  • Sanz13 8
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