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TSM forecasts revenue jump as industry trends point to upswing

EditorEmilio Ghigini
Published 01/24/2024, 06:02 AM
© Reuters.

TAIPEI - Taiwan Semiconductor Manufacturing (NYSE:TSM) is setting the stage for a robust year ahead, projecting a revenue increase in the range of low to mid-20% for the upcoming year. This optimistic forecast marks a significant turnaround from the nearly 9% decline experienced the previous year. The semiconductor industry, excluding memory chips, is anticipated to grow by approximately 10%, with specialized foundries like TSM poised to potentially double that rate of growth.

In a related industry development, Cognex (NASDAQ:CGNX) Corporation (NASDAQ:CGNX) is preparing for a resurgence in demand, particularly due to a spike in warehouse automation orders. This aligns with reports from KION Group, which has seen a substantial year-over-year increase in its supply chain solutions segment. Additionally, an expected 5% growth in the smartphone market is set to further drive demand for machine vision technologies, which are crucial for quality control and automation across various industries.

In a strategic move that initially raised eyebrows, Emerson Electric (NYSE:NYSE:EMR) completed an $8.2B acquisition of National Instruments (NASDAQ:NATI). As the industrial landscape shifts, this acquisition is increasingly seen as a savvy play. The positive financial outlook shared by TSM and the broader cyclical sector trends underscore the potential for Emerson's expanded portfolio to capitalize on the anticipated upswing in industrial demand.

InvestingPro Insights

Taiwan Semiconductor Manufacturing (NYSE:TSM) not only projects a revenue increase but also shows a promising investment profile according to recent InvestingPro data. With a market capitalization of $519.18B and a solid P/E ratio of 19.42, reflecting investor confidence, TSM stands as a formidable force in the semiconductor space. The company's impressive gross profit margin of 54.36% in the last twelve months as of Q1 2023, demonstrates its ability to manage costs effectively, which is crucial in a competitive industry.

InvestingPro Tips highlight TSM's consistent financial discipline, as evidenced by its ability to raise its dividend for 3 consecutive years and maintain dividend payments for 21 consecutive years. These are indicators of TSM's stable financial health and commitment to shareholder returns. Additionally, the company's significant return over the last week, with a 1-week price total return of 10.86%, suggests a strong short-term performance that aligns with the company's positive outlook.

For investors seeking more comprehensive analysis and tips, InvestingPro offers a wealth of additional insights. There are currently 19 more InvestingPro Tips available for TSM, which can be accessed with an InvestingPro+ subscription—now on a special New Year sale with discounts of up to 50%. Use coupon code "SFY24" to get an additional 10% off a 2-year subscription, or "SFY241" to get an additional 10% off a 1-year subscription, further enriching your investment strategy with expert data and analysis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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