Taiwan Semiconductor’s (TSM) November results are likely to help the semiconductor foundry giant top analyst expectations, Wedbush Securities said.
“Net, we believe TSMC will likely finish modestly ahead of initial expectations,” analyst Matt Bryson wrote in a note to clients. “And with exchange rates also shifting in TSMC’s favor (a stronger USD boosts both sales in local currency as well as GMs), we believe the delta in local currency will likely exceed TSMC’s beat on a dollar basis.”
Bryson, who has an Outperform rating on Taiwan Semiconductor and NT$1,700 price target on the stock, added that recent conversations suggest “limited to no seasonal effects” for AI data center spending.
“As such, our current March estimates likely are overly conservative, particularly with TSMC also seemingly set to benefit from higher pricing and a continued mix shift towards newer products (including 2nm wafers) as we move into next year,” Bryson added.
Taiwan Semiconductor Manufacturing’s November sales soared 24.5% year-over-year to about NT$343.61B. TSM produces chips for some of the world’s largest tech companies, including Apple (AAPL), Nvidia (NVDA) and AMD (AMD).
