Morgan Stanley's report pointed out that Taiwan Semiconductor (TSM.US) will disclose its financial performance for the second quarter of the 2024 fiscal year on July 18th. The bank expects the company to raise its third-quarter revenue growth guidance to a quarterly growth of 13%, with gross margin range nearly matching the second quarter level (median 52%).
With robust demand for artificial intelligence (AI), the bank believes that Taiwan Semiconductor will raise its full-year revenue growth guidance to a mid-range level of 20% on an annual basis, compared to the original guidance of a low to mid-range level of 20%. In terms of full-year capital expenditure, assuming Taiwan Semiconductor obtains discounts on equipment purchases, the bank expects its full-year capital expenditure guidance to be updated to between USD 30 billion and USD 32 billion, compared to the original guidance of between USD 28 billion and USD 32 billion.
The bank believes that Taiwan Semiconductor's second-quarter performance and guidance will meet market expectations, with a more positive outlook on its wafer pricing, and considers the demand for its SoIC 3D to be stronger (Apple (AAPL.US) will adopt it in the second half of next year, while NVIDIA (NVDA.US) will also adopt it in 2028). Therefore, the target price for Taiwan Semiconductor (02330.TW) has been raised from TWD 1,080 to TWD 1,180, with a &#34;hold&#34; rating.
Taiwan Semiconductor's stock price hit a new high this morning, reaching TWD 1,035, up 2.99%

The bank expects the company to raise its third-quarter revenue growth guidance to a quarterly increase of 13%, with gross margin range nearly at the level of the second quarter (median 52%)

- Morgan Stanley's report anticipates TSMC (TSM.US) to reveal its 2024 fiscal Q2 performance on July 18, with an expected 13% quarterly revenue growth guidance and a gross margin range close to the previous quarter at around 52% median. Amid robust AI demand, the company is believed to elevate its full-year revenue growth guidance to the mid-range of 20%, up from the initial low-to-mid 20% guidance. Assuming discounts on equipment procurement, the annual capital expenditure guidance is projected to be revised to between 300 billion and 320 billion USD from the previous 280 billion to 320 billion USD. Morgan Stanley expects TSMC's Q2 performance and guidance to meet market expectations, viewing its wafer pricing positively and noting stronger demand for SoIC 3D (to be adopted by Apple (AAPL.US) in the second half of next year and by NVIDIA (NVDA.US) in 2028), leading to an upward revision of TSMC's (02330.TW) target price from 1,080 to 1,180 New Taiwan Dollars with a "hold" rating. TSMC's stock price hit a new high this morning, currently at 1,035 New Taiwan Dollars, up by 2.99%.


Morgan Stanley raises Taiwan Semiconductor's target price to NTD 1,180, with a "Hold" rating