To: robert b furman who wrote (88648 ) 7/14/2022 6:43:10 PM From: Return to Sender 2 RecommendationsRecommended By
Read Replies (1) | Respond to Briefing.com assessment of TSM's earnings deserves a post of its own Bob. Thanks for the information on COHU and TER. Which big Semi or Semi-equipment reports next? I know INTC reports in a couple weeks.Taiwan Semi (TSM +1%) is steadily chipping higher today following its fourth consecutive earnings beat in Q2 and upbeat Q3 revenue guidance. As the world's largest contract manufacturer of semiconductors, its solid Q2 numbers set a positive tone for the semiconductor industry ahead of earnings season. Alongside a strong earnings beat, TSM also topped revenue expectations, posting 43.5% growth yr/yr to NT$534.14 bln. The sizeable leap in revs was due to broad-based strength, particularly in the three industries that have demonstrated resiliency during the current environment: automotive, high-performance computing (HPC), and internet-of-things (IoT). Automotive revs grew 14% yr/yr in the quarter. Although this division accounted for just 5% of overall sales, the double-digit gains are a good sign for automotive manufacturers as well as other chip makers with exposure to the automotive industry, such as Broadcom (AVGO) , Marvell (MRVL) , and NVIDIA (NVDA) . Another stand out was HPC sales, which expanded by 13% yr/yr. Like what we saw with MRVL in late May with its 131% yr/yr explosion in data center revs, the data center industry is continuing to boom. TSM's double-digit growth in HPC indicates that this backdrop has not shifted. Therefore, we expect robust data center sales growth for chip makers in the coming weeks. Meanwhile, IoT sales also jumped by double-digits, increasing 14% yr/yr. On a less positive note, smartphone and consumer electronics sales lagged significantly, growing just 3% and 5%, respectively. However, this should have already been priced in after numerous chip makers began seeing softness in these markets during Q1. Also, MU noticed a similar deceleration in MayQ. This slowdown is something to keep an eye on and whether it will significantly impact PC and chip makers with greater exposure to these markets, like HP Inc. (HPQ) , Dell (DELL) , and Advanced Micro (AMD) .
