Shares of semiconductor major Taiwan Semiconductor (NYSE:TSM) are ticking higher in the pre-market session today after the company announced revenue of NT$180,430 million for the month of September, marking a 4.4% sequential decline and a 13.4% decrease compared to the same period last year.
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TSM generated NT$1.54 trillion in revenue in the first nine months of 2023, representing a 6% decrease from the previous year’s figure. The decline in the company’s top line was less than anticipated by investors, as tepid smartphone and laptop chip revenue was offset by robust demand for AI chips.
TSM serves as a major supplier for tech powerhouses Apple (NASDAQ:AAPL) and NVIDIA (NASDAQ:NVDA). Investors are concerned about supply challenges plaguing chipmakers, and TSM’s third-quarter results, scheduled for October 19, will be keenly watched. The company has been witnessing delays at its multi-billion-dollar chip facility in Arizona and is looking to control costs while remaining cautious about the demand outlook.
TSM generated $17 billion in revenue for the third quarter, surpassing the Street’s estimates. Analysts expect the company to post an EPS of $1.15 on revenue of $16.96 billion for the quarter. In the year-ago period, TSM had posted an EPS of $1.70, outperforming expectations by about $0.05.
What Is TSM Price Target?
Overall, the Street has a consensus price target of $125 for TSM, along with a Strong Buy consensus rating. This points to a substantial 43.6% potential upside in the stock.
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