Key Points
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Taiwan Semiconductor Manufacturing Company (TSMC) reported Q4 earnings today, exceeding Wall Street’s expectations with a non-GAAP earnings per share of $3.14 on sales of $33.7 billion.
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Nvidia, which relies on TSMC for its chip manufacturing, saw a 3.2% increase in its stock price as TSMC’s strong performance indicates continued high demand for AI chips.
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Nvidia now has a market capitalization of approximately $4.59 trillion, valued at about 21.5 times expected sales and 40 times expected earnings.
On October 26, 2023, TSMC’s earnings results beat the average analyst estimates, which had predicted a per-share profit of $2.98 on revenue of $32.73 billion. The results suggest robust demand for AI chip fabrication, likely benefiting Nvidia as it ramps up orders with TSMC.
