TSMC shares increased by more than 4 percent on Friday morning, outperforming the larger market, as the Taiwanese chipmaker announced a forecast-beating third-quarter profit, although it issued a more cautious note on upcoming demand.
Taiwan Semiconductor Manufacturing Company (TSMC), a major Applesupplier and the world''s largest contract chip manufacturer, posted a profit increase of 80 percent on Thursday for the July-September period of 2022, the highest increase in two years.
TSMC, Asia''s most well-known listed company, said it is being more cautious in planning investments for 2023, but says it will "attend a growth year."
Analysts at Daiwa Capital Markets said investors should take advantage of the low stock TSMC shares, which fell more than 30% this year, and said the company had given "intact" guidance for the fourth quarter and 2023, despite cutting capex to enhance capacity despite a large inventory correction.
"Although this correction will likely result in a lower loading rate for TSMC in 1H23, it is well in our expectation, and we remain optimistic that this time, the TSMC will be counter-cyclical, weathering better than its peers through this correction until 2023."
According to a research note, TSMC shares were too low on long-term computing growth, particularly growth for artificial intelligence, the Internet of Things, and high-performance computing. "It''s possible that TSMC stocks will last for decades," said Morningstar.
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The shares of TSMC''s smaller Taiwanese competitor, United Microelectronics, rose more than four percent on Friday morning. It reported third-quarter earnings on October26.
Thomson Reuters 2022