Strong iPhone Demand Helps Taiwan Semiconductor Clock Record Quarterly Revenue: Bloomberg

Taiwan Semiconductor Manufacturing Company Limited’s (NYSE: TSM) revenues for the fourth quarter of 2020 could be close to NT$361.5 billion (roughly $12.92 billion), claims Bloomberg based on the December sales report.

What Happened: Bloomberg’s sales estimates are an indicator of solid demand for Apple Inc’s (NASDAQ: AAPL) 5G iPhones.

The company’s management anticipates that the 5G and high-performance computing products would be the key growth drivers over the long-term.

Bloomberg Intelligence Analysts Charles Shum and Simon Chan opine that the Taiwanese company’s revenues would beat the $12.7 billion guidance, with regular orders from Apple and Advanced Micro Devices Inc (NASDAQ: AMD).

However, they also hint that additional costs to manufacture the 5-nanometer chips and the Taiwanese currency’s strong performance could weigh on the operating margin.

Why Does It Matter: Bloomberg’s estimates come a week before Taiwan Semiconductor Manufacturing Co’s scheduled earnings release. The company’s financials are scheduled for release on Jan 14.

For the period between October to December 2020, Apple suppliers exhibit strong confidence of beating revenue expectations. Foxconn or Hon Hai Precision Industry Co HNHPF booked higher than expected revenues for that period, and Apple’s U.K. headquartered supplier Dialogue Semiconductor PLC (OTC: DLGNF) has raised sales forecasts.

Price Action: TSM shares are up 2.40% at $124.35, hitting a new 52-week high in the pre-market session on the last check Friday.

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