Here's How Taiwan Semiconductor's Revenue Report Helps 2 Portfolio Holdings
They report their March quarterly results in full next week.
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* Taiwan Semi’s March revenue report stuns, and is good for NVDA and MRVL.
This morning Taiwan Semiconductor TSM announced its net revenue for March 2024 rose 7.5% compared to February and was up 34.3% year over year.
Because High-Performance Computing (data center and AI) is one of TSM’s largest end markets and 1Q 2024 is the weakest month for smartphones, this explains why our shares of Nvidia NVDA are up today after falling low double-digits in recent weeks.
We see it as a positive reminder of AI adoption and the pull through it will have to not only data center and eventually network and carrier infrastructure. In other words, a positive driver for our shares of Marvell MRVL as well.
In terms of getting ready for the March quarter earnings season, the aggregated revenue report for TSM’s first quarter was favorable as well. Revenue for the March quarter totaled NT$592.64 billion (~$15.54 billion), an increase of 16.5% year over year and above the $18.06 billion consensus forecast.
In addition to AI and data center demand, the rebound reported by IDC for the PC market is another positive factor albeit a far smaller one for TSM. For Apple AAPL, IDC’s data showed market share gains were had during the March quarter as its shipments climbed more than 14% year over year.
We’ll get much more insight into TSM’s market exposure for the March quarter when it reports its quarterly results in full next week. As we get that insight, we’ll be revisiting our price target for a few positions, including Qualcomm QCOM. While we are interested in picking up more NVDA shares, we’ll wait for tomorrow’s March Producer Price Index (PPI) report before doing so.
At the time of publication, TheStreet Pro Portfolio was long NVDA, MRVL, AAPL and QCOM.
