On Thursday, October 17, global chip manufacturing giant Taiwan Semiconductor released its third-quarter financial report for 2024. The performance in the third quarter was strong, with revenue, net income, and gross margin all surpassing expectations.Especially with the gross margin returning to around 58%, significantly higher than the market expectation (54.8%).The guidance for the next quarter on both revenue and gross margin significantly exceeded market expectations, demonstrating continued strong demand for AI.
1. Demand for AI remains strong, while smart phone demand is recovering.
Q3 net revenue was 759.69 billion New Taiwan dollars, approximately 23.5 billion US dollars, a year-on-year increase of 39%, exceeding the estimated 751.06 billion New Taiwan dollars; however, the revenue surprise was actually lagging behind, as the monthly sales figures for taiwan semiconductor were already well anticipated by the market.Of particular interest is the breakdown of the revenue side, including the demand drivers for revenue and the increase in average selling price.
Chart: Revenue situation of taiwan semiconductor
Source of Information: Company Announcement, Compilation of Futu Securities
Looking at the breakdown of the revenue side, high-performance computing platforms account for 51%, while smart phone revenue accounts for 34%. Compared to the previous quarter, demand for AI remains very strong, with a quarter-on-quarter growth of 11%; while the quarter-on-quarter growth of smart phones reached 16% (compared to -1% in the previous quarter), with a 1% increase in share.Indicating that the demand for smart phones is gradually recovering season by season.
Chart: Sales revenue situation of Taiwan Semiconductor by platform.
Source of Information: Company Announcement, Compilation of Futu Securities
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