Chip manufacturer Taiwan Semiconductor (NYSE:TSM) reported better-than-expected sales and earnings for the third quarter of Fiscal 2023, despite performing poorly compared to the year-ago period. TSMC generated quarterly sales of $17.28 billion, down 14.6% year-over-year, but easily surpassed analysts’ estimates of $16.97 billion. Additionally, diluted earnings came in at $1.29 per share, outpacing the consensus estimate of $1.16 per share. TSM stock is up 3% in pre-market trading at the time of writing.
TSM’s net income declined 24.9% to $6.5 billion compared to the prior year period. However, compared to Q2FY23, Taiwan Semi’s financials have improved. The solid build-up of its 3-nanometer technology and escalating demand for its 5-nanometer technologies helped TSMC to improve its performance over the second quarter of Fiscal 2023.
A slump in demand for consumer electronics is hurting the world’s largest chip manufacturer. Even so, the company stated that the demand for electronics would pick up pace as retailers’ inventory levels wind down steadily. Looking ahead, TSMC expects Q4FY23 revenue in the range of $18.8 to $19.6 billion, thanks to the potential boost in demand for its 3-nanometer chips. Year-to-date, TSM stock has gained 22.4%.
What is the Target Price for TSM Stock?
With seven Buys and one Hold rating, TSM stock commands a Strong Buy consensus rating on TipRanks. The average Taiwan Semiconductor Manufacturing price target of $122.50 implies 36.7% upside potential from current levels.
