TSMC Surges As April Revenue Soars 60% YoY

April YoY revenue comps flashing green across the board with just one exception

TSMC yesterday released their April 2024 revenue numbers and it was a doozy.

HSINCHU, Taiwan, R.O.C. – May 10, 2024 - TSMC today announced its net revenue for April 2024: On a consolidated basis, revenue for April 2024 was approximately NT$236.02 billion, an increase of 20.9 percent from March 2024 and an increase of 59.6 percent from April 2023. Revenue for January through April 2024 totaled NT$828.67 billion, an increase of 26.2 percent compared to the same period in 2023.

This April revenue number was the company’s highest ever for that month and their second highest monthly revenue number ever, the highest being NT$243.2 billion back in October 2023.

The 60% YoY growth is impressive but needs to be seen in the context of an easy compare. April (and March) represented the trough of TSMC’s downturn in 2023. With this in mind, the MoM growth of 20.9% is the more relevant comparison, but that also is impressive in its own right.

The fact that TSMC’s YTD revenues are already up 26.2% YoY might suggest that the company is likely to exceed its full year 2024 forecast, which was as follows:

Supported by our technology leadership and broad customer base, we expect that our business to grow quarter-over-quarter throughout 2024 and reaffirm our full year revenue to increase by low to mid-20% in U.S. dollar terms.

Before you jump to any conclusions, it’s important to recall that TSMC had a strong finish to 2023 with the fourth quarter being particularly strong. Therefore, as the year progresses, the YoY comps will be more and more challenging. If I were to hazard a guess, I’d say TSMC will come in at mid-to-high 20% YoY growth this year.

The markets were clearly delighted with the April revenue number and TSMC share price rose by 4.5% in overnight trading on the US markets.

You could have bought TSMC for $85 back in October 2023. Today, you will pay 75% more at the current price of $149.

It’s not just TSMC that’s off to a strong start this quarter. There’s green signals across the board on our Real Time Indicators dashboards with just one exception. We share the latest April revenue numbers for our favourite Taiwan companies and highlight an important caveat about the prospects for the much-touted AI PC. Thanks as always for reading!