Taiwan Semiconductor Q4 Earnings Preview: Analysts Expect 5th Straight Beat, Will Execs Comment On Trump Impact?

Taiwan Semiconductor Manufacturing TSM could share more commentary on strong semiconductor demand and how a new White House administration could boost the sector when the company reports fourth-quarter financial results before the market opens Thursday.

Earnings Estimates: Analysts expect Taiwan Semiconductor to report fourth-quarter revenue of $26.28 billion. That’s up from $19.62 billion in last year's fourth quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in four straight quarters and five of the last 10 quarters overall.

Analysts expect the company to report fourth-quarter earnings per share of $2.23, up from $1.44 in last year's fourth quarter. The company beat analyst earnings per share estimates in four straight quarters and six of the last 10 quarters overall.

Guidance from the company provided after Q3 results called for fourth-quarter revenue of $26.1 billion to $26.9 billion.

What Analysts Are Saying: Strong demand for leading-edge nodes from the company could power fourth-quarter results and 2025 guidance, Goldman Sachs analyst Bruce Lu recently said.

The analyst maintained a Buy rating and raised the price target from $248 to $254.

Lu sees strong momentum in artificial intelligence helping to boost revenue for Taiwan Semiconductor in 2025.

The analyst also sees a more favorable landscape for Taiwan Semiconductor against competitors like Samsung Electronics and Intel as those companies move to more advanced nodes.

Taiwan Semiconductor could raise prices and see its gross margins grow in 2025, the analyst added.

Read Also: TSMC Powers Up: December Revenue Soars Ahead Of Q4 Earnings Release

Key Items to Watch: Analysts and investors will be watching for commentary from Taiwan Semiconductor on recent reports of increased export regulations to China.

Advanced chips, including those that specialize in AI, have been a hot topic among items that are banned from being exported to China under the Biden administration.

Trump is set to take office on Monday, a short time after Taiwan Semiconductor's earnings report is published. Analyst questions could center on the political conversation of the semiconductor sector and what's ahead.

The semiconductor sector saw several stocks as top performers in 2017 — Trump’s first year in the White House previously. Micron Technology and Nvidia Corporation were among the 10 best-performing stocks in 2017 among S&P 500 members.

Investors and analysts may also be looking for an update on Taiwan Semiconductor's U.S. expansion. The company expects its Arizona plant to begin manufacturing in 2025.

Price Action: Taiwan Semiconductor stock is up 2% to $206.06 on Wednesday versus a 52-week trading range of $100.000 to $222.20. Taiwan Semiconductor stock is up 103% over the last year.

Read Next:

• Taiwan Semi, Samsung, Intel May Face Stricter US Rules on Chip Exports to China Over Security Concerns

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