tsmc reports significant revenue drop in november
Hsinchu, Tuesday, 10 December 2024.
Taiwan Semiconductor Manufacturing Company (TSMC) experienced a 12.2% decline in revenue for November, amounting to 276.058 billion New Taiwan Dollars. Despite this monthly downturn, TSMC shows strong year-over-year growth due to rising demand for AI solutions. The revenue drop contrasts with the company’s robust financial trajectory, suggesting market challenges amid AI-driven demand. Institutional investors maintain cautious optimism, eyeing TSMC’s potential to meet higher growth targets. TSMC’s fourth-quarter forecasts indicate potential revenue between 261 and 269 billion U.S. dollars, with a projected quarterly growth median of 13%. This underscores TSMC’s ongoing strategic positioning in the semiconductor industry, balancing short-term fluctuations with long-term growth prospects.
Monthly performance analysis
TSMC’s November revenue reached NT$276.058 billion [1][3], marking a 12.2% decrease from October’s figures [1]. Despite this monthly decline, the company demonstrated robust year-over-year growth of 34% [1][3]. The cumulative revenue for January through November 2024 stands at NT$2.61 trillion, showing a substantial 31.8% increase compared to the same period last year [1].
AI chip production momentum
The company maintains strong production momentum in AI chip manufacturing, particularly for NVIDIA. Production of the GB200 chip began in November [1], with initial small-batch shipments underway. The B300 chip upgrade, scheduled for mid-2025, is expected to maintain high utilization rates. Market analysts indicate TSMC’s advanced process capacity will likely remain in a supply shortage through the first half of 2025 [1].
Market performance and valuation
TSMC’s stock has demonstrated remarkable performance in 2024, surging approximately 80% throughout the year [5]. The company’s market capitalization stands at $858.17 billion [4], with a price-to-earnings ratio of 31.81 [4]. Analysts project significant growth, forecasting revenue of $110.43 billion for the next fiscal year, representing a 24.9% growth rate [5].
Fourth quarter outlook
For the fourth quarter, TSMC projects revenue between $261-269 billion, with a median quarterly growth of 13% [1][3]. Financial experts suggest potential for exceeding these targets, with some analysts predicting growth could reach 14.5% [1]. This forecast is based on current market conditions and continued strong demand for advanced semiconductor manufacturing capabilities [5].