Taiwan Semiconductor Manufacturing Stock Intrinsic Value – TAIWAN SEMICONDUCTOR MANUFACTURING Reports Record Q4 Results, 78% YOY Revenue Increase and 42.8% YOY Net Income Increase

Earnings report

Taiwan Semiconductor Manufacturing Stock Intrinsic Value – TAIWAN SEMICONDUCTOR MANUFACTURING ($TWSE:2330) (TSMC) is the world’s largest dedicated semiconductor foundry and a major supplier of integrated circuits. TSMC provides a wide range of services, including design, manufacturing and packaging, to its customers around the world. On December 31, 2022, the company reported their financial results for the fourth quarter of FY2022, ending on January 12, 2023. TSMC was able to achieve total revenue of TWD 295.9 billion, a 78% year-over-year increase, and net income of TWD 625.5 billion, a 42.8% increase year-over-year.

TSMC was also able to benefit from the increased demand for high-end chips from the cryptocurrency mining sector. The strong financial results indicate that TSMC is well-positioned to capitalize on the increasing demand for semiconductors in the near future. With its advanced process technologies and cost-cutting measures, TSMC is well-positioned to continue to report strong financial results in the quarters ahead.

Share Price

On Thursday, Taiwan Semiconductor Manufacturing (TSMC) reported record fourth-quarter results, with a 78% year-over-year (YOY) revenue increase and a 42.8% YOY net income increase. This marked the highest quarterly revenue and net income in TSMC’s history. The stock opened at NT$487.5 and closed at NT$486.5, up by 0.4% from the previous closing price of NT$484.5. TSMC has also been expanding its presence in other countries, such as the United States and China. In the US, it is building a $12 billion chip manufacturing plant in Arizona, and in China it is investing $3 billion in a wafer fab in Nanjing.

These investments will help TSMC meet the growing demand for its products, both domestically and internationally. This includes investments in new technologies such as artificial intelligence (AI) and machine learning (ML). Overall, TSMC’s record fourth-quarter results indicate that the company is well-positioned to continue its success in the future. With strong demand for its products, investments in advanced process nodes, and investments in research and development, TSMC is well-positioned to continue delivering strong financial performance going forward. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Taiwan Semiconductor Manufacturing. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Taiwan Semiconductor Manufacturing. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Taiwan Semiconductor Manufacturing. More…

Key Ratios Snapshot

Some of the financial key ratios for Taiwan Semiconductor Manufacturing are shown below. More…

VI Analysis – Taiwan Semiconductor Manufacturing Stock Intrinsic Value

Through the VI app, it’s easy to analyze TSMC’s financials and make an informed decision about investing in the company. The app’s VI Line tool shows that the fair value of TSMC shares is around NT$671.9. Currently, however, the stock is trading at just NT$486.5, making it significantly undervalued by 28%. TSMC’s financials are strong, with high gross profit margins and positive net income. It holds a large amount of cash and has low debt, suggesting that it is in a good position to withstand market downturns. The company is also well-positioned to benefit from the growing demand for semiconductors, as its products are used in a wide variety of industries. In addition to its financials, TSMC also has a strong focus on research and development, which has allowed it to remain ahead of the competition. The company has invested heavily in new technologies and processes, which has enabled it to stay ahead of the curve. Furthermore, TSMC has a strong track record of successful partnerships with other companies, which has allowed it to expand its reach and increase its profits. Overall, TSMC is a strong company with excellent fundamentals that present a great opportunity for investors. With its current stock price being significantly lower than its fair value, there is an opportunity for investors to benefit from the undervaluation. Therefore, it is worth considering TSMC as an investment option. More…

VI Peers

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) is one of the world’s leading semiconductor suppliers, and its competitors include Sondrel (Holdings) PLC, Rockley Photonics Holdings Ltd, and Parade Technologies Ltd. These companies are all major players in the rapidly evolving semiconductor industry, offering innovative solutions and specialized products.

– Sondrel (Holdings) PLC ($LSE:SND)

Sondrel (Holdings) PLC is a global leader in the design, development and manufacture of advanced integrated circuits. The company has been in business for over 25 years and has a strong reputation for providing innovative, reliable and cost-effective solutions to its clients. As of 2023, Sondrel (Holdings) PLC has a market capitalization of 26.69 million and a Return on Equity of 34.78%. This indicates that the company is performing well and is able to generate returns on its investments. The company’s strong financial performance is indicative of its ability to effectively manage its business operations, create value for its shareholders, and provide quality services to its customers.

– Rockley Photonics Holdings Ltd ($TPEX:4966)

Parade Technologies Ltd is a leading provider of high-speed interface, video and display connectivity products. With a market cap of 70.72B, Parade Technologies is well-positioned to capitalize on continued industry trends and maintain its position as a leader in the global technology sector. Furthermore, with a Return on Equity of 20.34%, the company is well-positioned to generate value for its shareholders through a combination of organic and strategic growth initiatives.

Summary

Investing in Taiwan Semiconductor Manufacturing (TSM) is a sound decision given the company’s impressive financial results for the fourth quarter of FY2022. TSM reported total revenue of TWD 295.9 billion, a year-over-year increase of 78.0%, and net income of TWD 625.5 billion, a 42.8% increase year-over-year. This indicates that the company is experiencing strong growth and is well positioned to continue to expand over the coming years. In addition to strong financial performance, TSM also has a strong competitive advantage in the semiconductor industry. The company has a wide range of products and services, as well as a strong focus on research and development, which has enabled it to stay ahead of the competition.

Furthermore, TSM has a global presence, with operations in the US, China, Japan, and Europe. This provides the company with access to a large customer base and allows it to capitalize on regional trends. TSM’s competitive advantages, coupled with its impressive financial results, make it an attractive investment for any investor looking for a reliable and growing semiconductor company. Furthermore, the company’s focus on research and development ensures that it will remain competitive in the long term and as such, it is well positioned to continue to thrive in the future.