Core Insights - The article discusses the investment positions of Parkev Tatevosian, CFA, and mentions that The Motley Fool has positions in and recommends Nvidia and Taiwan Semiconductor Manufacturing [1] Group 1 - Parkev Tatevosian has no position in any of the stocks mentioned [1] - The Motley Fool has positions in Nvidia and Taiwan Semiconductor Manufacturing, indicating a positive outlook on these companies [1] - The Motley Fool has a disclosure policy regarding its investment positions [1]

There is no stopping Taiwan Semiconductor Manufacturing (NYSE:TSM). The world’s largest pure play semiconductor foundry really has too much demand for its capacity and will be flush with growth for years to come. Despite the excess of good fortune showering down on Taiwan Semiconductor stock, shares are not overvalued. TSM stock is undervalued, with a price-to-earnings ratio of 20 and a sales multiple of less than 2. With sales growing at 16.5% CAGR and earnings at 18% CAGR, this is a discounted stock. Wall ...

Financial Review and Compliance - The consolidated financial statements for the three months ended March 31, 2024, and 2023 were reviewed, showing no significant discrepancies in financial presentation [6]. - The company reported a consolidated financial performance in accordance with International Accounting Standard 34, ensuring compliance with local regulations [6]. - The review was conducted under the Standards on Review Engagements of the Republic of China, focusing on financial and accounting inquiries [5]. - The engagement partners for the review were Shih Tsung Wu and Shang Chih Lin from Deloitte & Touche [7]. - The financial statements are presented in thousands of New Taiwan Dollars, adhering to local accounting principles [10]. - The review confirmed that the financial statements fairly represent the company's consolidated financial position as of March 31, 2024, and 2023 [6]. - The company’s cash flows for the three months ended March 31, 2024, were also reviewed and found to be in compliance with applicable standards [6]. - The independent auditors' review report was translated into English for reader convenience, maintaining the integrity of the original Chinese version [8]. - The financial statements are intended to reflect the company's financial performance and position in the Republic of China context [8]. - The review process is less comprehensive than an audit, which limits the assurance level regarding the identification of significant matters [5]. Financial Position and Performance - Total assets increased to $5,787,891,082, up 4.6% from $5,532,371,215 as of December 31, 2023 [11]. - Current assets rose to $2,452,767,394, representing 42% of total assets, compared to 40% in the previous quarter [11]. - Cash and cash equivalents increased by 15.9% to $1,698,195,704 from $1,465,427,753 [11]. - Total liabilities amounted to $2,122,174,828, remaining stable at 37% of total assets [11]. - Equity attributable to shareholders of the parent reached $3,635,731,930, accounting for 63% of total equity [11]. - Unappropriated earnings grew to $2,955,395,983, maintaining a 51% share of total equity [11]. - Noncurrent liabilities decreased slightly to $1,095,994,749, representing 19% of total liabilities [11]. - Inventories increased to $267,123,339, reflecting a 6.4% rise from $250,997,088 [11]. - Accounts payable rose to $56,424,812, a 1.3% increase from $55,726,757 [11]. - Total current liabilities increased to $1,026,180,079, up 12.3% from $913,583,316 [11]. Revenue and Income - Net revenue for the three months ended March 31, 2024, was $592.64 million, a 16.5% increase from $508.63 million in the same period of 2023 [14]. - Gross profit for the same period was $314.51 million, representing a gross margin of 53%, compared to 56% in the previous year [14]. - Operating expenses totaled $65.36 million, maintaining 11% of net revenue, consistent with the previous year [14]. - Income from operations was $249.02 million, accounting for 42% of net revenue, down from 45% in the prior year [14]. - Net income for the three months was $225.22 million, an 8.8% increase from $206.95 million in the same period last year [14]. - Total comprehensive income for the period was $266.50 million, reflecting a 30.8% increase from $203.65 million in the previous year [16]. - Basic and diluted earnings per share were both NT$8.70, up from NT$7.98 in the same period of 2023 [16]. - The company reported a foreign exchange gain of $3.20 million, compared to a loss of $44,363 in the previous year [14]. - Research and development expenses were $46.11 million, representing 8% of net revenue, consistent with the previous year [14]. Cash Flow and Investments - Cash generated from operations in Q1 2024 was NT$437,362,333, up from NT$385,931,234 in Q1 2023, reflecting a growth of 13.4% [22]. - Net cash generated by operating activities for Q1 2024 was NT$436,311,108, compared to NT$385,244,745 in Q1 2023, indicating an increase of 13.3% [22]. - Net cash used in investing activities for Q1 2024 was NT$159,806,991, a decrease from NT$272,231,795 in Q1 2023, showing a reduction of 41.2% [23]. - Net cash used in financing activities for Q1 2024 was NT$71,685,617, compared to NT$64,487,030 in Q1 2023, representing an increase of 11.0% [23]. - Cash and cash equivalents at the end of Q1 2024 totaled NT$1,698,195,704, up from NT$1,385,232,810 at the end of Q1 2023, marking an increase of 22.6% [26]. Shareholder Returns and Dividends - Cash dividends to shareholders amounted to $90,762,248, reflecting a commitment to return value to shareholders despite fluctuations in net income [18]. - TSMC's cash dividends per share for Q1 2024 are set at NT$4.00, an increase from NT$3.00 in Q1 2023 [87]. - The total cash dividends to shareholders for Q1 2024 amount to $103,734,517, compared to $77,796,213 in Q1 2023 [87]. Debt and Liabilities - Total liabilities as of March 31, 2024, were $1,009,462,421, up from $895,457,426 as of March 31, 2023, representing an increase of approximately 12.7% [128]. - The company's total financial liabilities as of March 31, 2024, were $1,774,692,676, slightly up from $1,768,812,131 as of December 31, 2023, indicating a marginal increase of about 0.3% [129]. - Bonds payable amounted to $1,186,624,225 as of March 31, 2024, with $28,846,265 due in less than 1 year [144]. - Long-term bank loans and lease liabilities combined total $12,830,932 and $34,483,988 respectively as of March 31, 2024 [144]. Investments and Marketable Securities - TSMC holds marketable securities valued at approximately NT$6,951,320,000 in commercial paper from Cathay Financial Holding Co., Ltd. [193]. - The fair value of TSMC's investment in ARM Holdings plc is approximately US$138,837,000 [193]. - TSMC's investment in commercial paper from various companies includes significant holdings in Bank of America Corporation and Morgan Stanley, with fair values of US$88,527,000 and US$82,268,000 respectively [193]. - The total carrying value of TSMC's marketable securities reflects a diverse investment strategy across multiple sectors [197]. Risk Management and Financial Instruments - The company manages liquidity risk by maintaining adequate cash and cash equivalents, ensuring sufficient funding to support operations over the next 12 months [143]. - Interest rate futures contracts with a contract amount of US$62,700 thousand were entered into to hedge against interest rate fluctuations, maturing in June 2024 [48]. - The effect of hedging instruments for the three months ended March 31, 2024 resulted in a change of $793,830 for net investments in foreign operations [55]. Employee Compensation and Benefits - The company recognized share-based payment expenses of $161.85 million during the period [90]. - TSMC's total liabilities under cash-settled share-based payment arrangements as of March 31, 2024, amounted to NT$82,942 thousand, compared to NT$23,379 thousand as of March 31, 2023 [119]. - The profit-sharing bonus to employees for the three months ended March 31, 2024, was $13,472,869, up from $12,363,840 in the same period of 2023, indicating an increase of approximately 9% [121].

Group 1 - Taiwan Semiconductor Manufacturing Co. (TSMC) reported a 59.6% increase in April sales year-over-year, reaching approximately 236 billion New Taiwan dollars ($7.3 billion), with a 20.9% rise from March [1][2] - For the year through April, TSMC's revenue totaled TWD 828.7 billion, reflecting a 26.2% increase compared to 2023 [2] - TSMC's American depositary receipts (ADRs) traded near their all-time high, rising 5% to $149.96, and have increased 44% this year, peaking at $158.40 on March 8 [3] Group 2 - TSMC supplies over half of the world's chips, including to major tech companies like Apple and Nvidia [2] - The U.S. Commerce Department announced a $6.6 billion grant and up to $5 billion in low-cost loans to TSMC for building a second manufacturing plant in Arizona, with TSMC planning to increase its investment to over $65 billion and construct a third plant in the state [2] - U.S. Commerce Secretary Gina Raimondo highlighted the economic implications of a potential Chinese invasion of Taiwan, stating that the seizure of TSMC would be "absolutely devastating" to the U.S. economy, as the U.S. relies on TSMC for 92% of its leading-edge semiconductors [2]

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Group 1: Company Performance - Taiwan Semiconductor Manufacturing Company Limited (TSM) reported a revenue increase of 59.6% year-over-year, reaching NT$236.02 billion in April 2024, driven by demand from major clients like Apple, Nvidia, and AMD [1] - Despite previous caution from CEO C. C. Wei regarding the semiconductor market's growth in 2024, TSM remains optimistic about future expansion, particularly in the foundry sector due to rising AI semiconductor demand [1] - TSM announced a cash dividend of NT$4 per share for the first quarter of 2024, reflecting its commitment to shareholders [1] Group 2: Stock Performance and Technical Analysis - TSM's stock has faced volatility typical of the semiconductor industry, previously falling to $40 during the COVID bear market and rising above $140 by February 2021, but struggling to surpass the $145 mark [2] - The stock attempted to break the $145 barrier in January 2022 and reached a high of $158.4 earlier this year, but retreated shortly after; a sustained close above $145 for a week is necessary for a potential uptrend [5] - Currently, TSM's stock is trading within a $125-$145 range, which is being tested again [6]

Group 1 - TSMC has experienced significant revenue growth of 60% year-over-year in April 2023, reaching approximately $7.2 billion [1] - TSMC's stock has risen nearly 70% on the NYSE and about 60% in the Taiwanese stock market over the last 52 weeks, raising questions about its potential to reach $200 per share [1] - The average 12-month price target for TSMC is currently $162.64, which is 13.90% above the current price, with a maximum estimate of $183 from Goldman Sachs [2][4] Group 2 - Despite the positive momentum, analysts suggest that TSMC may not reach the $200 price point before the end of 2024, although significant surges are possible in the technology sector [4] - Following the release of April's revenue figures, TSMC shares rose 3.11% in extended trading, indicating strong market reaction [5] - TSMC shares have increased by 40.64% since the beginning of 2024, recovering from a recent monthly decline [6]

Core Insights - Taiwan Semiconductor Manufacturing Co. (TSMC) reported April 2024 revenues of NT$236 billion (approximately $7.3 billion), reflecting a significant year-on-year increase of 59.6% and a month-on-month increase of 21% [1] - The April revenue figures are just $7.18 billion short of TSMC's record monthly high of NT$243.20 billion (US$7.517 billion) reported in November 2023, which had a year-on-year increase of 15.7% and a month-on-month increase of 34.8% [1] - TSMC's revenue growth is attributed to the rising demand for AI-related technologies and chips, indicating a robust market for AI-adjacent stocks [1][3] Revenue Performance - April 2024 revenue of NT$236 billion represents a near 60% increase compared to April 2023 [1] - The month-on-month increase of 21% in April 2024 significantly outpaces the previous year's performance in November 2023 [1] - This may be the highest yearly increase in monthly revenue figures TSMC has ever recorded [3] Market Demand - TSMC's CEO highlighted the growing integration of artificial intelligence across various sectors, including data centers, PCs, mobile devices, automobiles, and the Internet of Things [3] - The company is focusing on providing a comprehensive set of technologies to support AI development, including advanced silicon and packaging solutions [3]

Core Insights - TSMC reported a significant revenue increase of nearly 60% year-on-year for April, driven by high demand for advanced semiconductors used in AI hardware [1] - The company controls over 50% of the global semiconductor market and supplies chips for major tech companies, including Apple and Nvidia [1] - TSMC's consolidated revenue for April reached approximately NT$236.02 billion (US$7.2 billion), marking a 59.6% increase from April 2023 [1] Financial Performance - In the first quarter, TSMC's revenue rose 13% year-on-year to US$18.87 billion, with expectations of a 27.6% increase in the second quarter [2] - The demand for chips has surged globally due to the success of AI applications like OpenAI's ChatGPT [2] Geopolitical Context - TSMC's operations are primarily based in Taiwan, which faces geopolitical tensions with China, raising concerns about the stability of the semiconductor supply chain [2] - The U.S. has emphasized the importance of TSMC, with 92% of its leading-edge chips sourced from the company in Taiwan [4] U.S. Expansion Plans - TSMC announced plans for a third factory in the U.S., increasing its total investment in the country to US$65 billion [5] - The company has faced challenges in its U.S. projects due to a shortage of skilled labor necessary for chip manufacturing [5] - TSMC also launched an US$8.6 billion plant in Japan, indicating a strategic move to diversify production locations [5] Natural Disaster Impact - A recent earthquake in Taiwan prompted TSMC to reassure customers about minimal disruption to production [6]

会议纪 要 证 券研究 报 告 电子 2024 年5月7日 台积电（TSM）FY2024Q1业绩点评及法说会纪要 会议时间：2024年4月18日 AI 需求持续强劲，传统需求缓慢复苏 会议地点：线上  事项： 2024年4月18日台积电发布2024年Q1季度报告，并召开业绩说明会。2024Q1， 华创证券研究所 公司实现营收5926.4亿新台币/188.7亿美元，美元计价同比增长12.9%，环比减 少3.8%；毛利率为53.1%，同比下降3.2pct，环比提升0.1pct。 证券分析师：耿琛 电话：0755-82755859  评论： 邮箱：gengchen@hcyjs.com 1. 业绩总览：2024Q1实现营收5926.4亿新台币/188.7亿美元（美元计价：QoQ- 执业编号：S0360517100004 3.8%，YoY+12.9%），高于指引上沿（此前指引为180~188亿美金），环比下降主 证券分析师：岳阳 要受到智能手机市场季节性波动的影响，但得到了持续的高性能计算（HPC）需 求的部分抵消；2024Q1实现Non-GAAP毛利率53.1%（QoQ+0.1pct，YoY-3.2pct）， 邮 ...