TSMC Slips to 4th in WSB Rankings Despite AI-Driven Revenue Surge

In the latest WSB rankings, TSMC has slipped to the 4th position, dropping two places since yesterday. Over recent days, TSMC's shares have demonstrated an impressive upward trajectory, reaching a historic high with a 9.79% rise, marking a two-day continuous increase of 10%.

Amidst concerns about AI's impact on the market, TSMC has reassured investors with robust earnings. The firm's recent earnings call emphasized that AI demand remains substantial, propelling its U.S. stock to surge over 13% at one point. This optimism is supported by a strong belief within TSMC that AI will significantly enhance their revenue stream in the coming years.

In line with these projections, TSMC's management anticipates that AI-related revenues in 2024 will rise threefold, contributing to approximately a mid-double-digit percentage of their total income, thereby driving an estimated 30% increase in annual revenue.

This enthusiasm around AI is also propelling advancements in TSMC's cutting-edge processes. TSMC continues to prepare capacity for its N2 node, surpassing previous N3 levels, and foresees heavy demand for these advanced technologies in AI server chips.

Recently released financial results highlighted TSMC's stellar performance, with third-quarter revenue reaching 235 billion USD, a 36% year-over-year increase. Moreover, the gross margin hit 57.8%, exceeding expectations.

Looking ahead, TSMC is optimistic about its fourth-quarter financial outlook, projecting revenues between 261 and 269 billion USD, and a full-year revenue growth rate nearing 30%. These estimates have invigorated market confidence, positioning TSMC as a formidable leader in the semiconductor industry.

TSMC's strides in 3nm process technology have attracted major clients such as Apple, Qualcomm, and AMD, who are looking to leverage this advanced manufacturing capability for their next-generation chips.

Amid fierce competition, TSMC's dominance in the 3nm market is fortified by production efficiency and technological superiority. The company plans to increase prices for advanced nodes to capitalize on growing demand, despite the potential for higher customer costs.

As TSMC expands its CoWoS capacity, the financial returns from these innovative solutions are expected to rise, reinforcing its market position and securing its status as a leading entity in high-performance chip manufacturing.

Although the market presents significant competitive pressures, TSMC remains optimistic about its capability to meet the increasing technological demands, thus maintaining its leadership in the global semiconductor landscape.