Taiwan Semiconductor Q3 preview: What to anticipate from the trade bellwether?

Taiwan Semiconductor (NYSE:TSM) is scheduled to announce Q3 earnings outcomes on Thursday, October thirteenth, earlier than market open.

The report comes a few week after the Hsinchu-based firm posted downbeat September income outcomes and a big gross sales warning from its main consumer Superior Micro Gadgets (AMD).

AMD issued preliminary third-quarter outcomes that missed estimates by a wholesome measure, resulting in the inventory falling out of the gate, lately touching a 52-week-low of $59.84 a share. The losses washed over different chip shares Nvidia (NVDA) and Intel (INTC), though with Taiwan Semiconductor’s decline was comparatively smaller.

Over the past 3 months, EPS estimates have seen 5 upward revisions and 0 downward. Income estimates have seen 22 upward revisions and 0 downward.

The consensus EPS Estimate is $1.69 and the consensus Income Estimate is $19.06B (+28.1% Y/Y).

In different information, the Semiconductor sector bellwether is at the moment eyeing the manufacturing of 2nm chips for Apple, based on Digitimes.

Morgan Stanley lately known as Taiwan Semiconductor (TSM) a “high choose” within the sector. Analysts on the funding agency count on a semiconductor restoration within the second-half of 2023 and Taiwan Semiconductor is prone to profit, as it’s “the enabler of future know-how.”

Over the past 1 yr, TSM has crushed EPS estimates 100% of the time and has crushed income estimates 50% of the time.

SA authors have rated the inventory as a Purchase, with one current contributor evaluation suggesting the inventory may “doubtlessly greater than double in two years”. Nonetheless, Taiwan Semiconductor’s 2023 monetary outcomes will not be nearly as good as that for 2022 based on The Worth Pendulum.