TSMC Q1 earnings preview: All eyes on the AI boom

Taiwan Semiconductor Manufacturing is scheduled to report first-quarter results on Thursday, April 18th, after market close.

TSMC produces chips for some of the world’s largest tech companies, including Apple (AAPL), Nvidia (NVDA), and AMD (AMD).

Analysts expect earnings per share of $1.32 on revenues of $18.01 billion, which would mark a jump of 7.7% year-over-year.

Last week, the company reported a 16.5% rise in first-quarter revenue to about $18.54 billion, beating market expectations amid a boost in demand for artificial intelligence applications.

All eyes will be on the chipmaker’s second-quarter guidance, with investors looking at the impact of the recent earthquake in Taiwan on near-term financials.

The company paused some chip manufacturing and evacuated facilities after a 7.4 magnitude earthquake hit Taiwan on the morning of April 3rd.

Analysts at Needham trimmed their second-quarter estimates, stating that the “company might be seeing some short-term production delays and wafer losses, which could hurt June-quarter sales.”

While investment firm J.P. Morgan expects Taiwan Semiconductor (TSM) to report healthy second-quarter guidance.

The company is expected to maintain its 2024 guidance by making up for lost sales in the third-quarter.

Last month, TSMC secured up to $11.6 billion in U.S. grants, loans to boost domestic manufacturing of advanced semiconductors.

TSMC’s shares have surged 36% YTD, compared to a 6% gain of the broader S&P 500 index.

Over the last three months, the company has seen significant revisions to its estimates. Its earnings per share estimates have been revised upwards four times, while its revenue estimates have seen 14 upward revisions vs. three downward moves. Seeking Alpha