Taiwan Semi's Strong June Revenue Drives 2 Portfolio Price Targets Higher

* We are boosting our price targets for Nvidia and Apple, and reiterating our $95 target for Marvell.

* Taiwan Semi’s June revenue rose 32.9% year over year, putting its June-quarter revenue up 40% year over year.

* Canalys data show Apple took market share in the PC market during the June quarter.

* We will revisit our Qualcomm and Universal Display targets after today’s Samsung Unpacked event.

We have been waiting for Taiwan Semiconductor TSM, the largest chip fab, to share its June revenue, and this morning it reported that figure rose 32.9% year over year. With that in hand, we can see its revenue for the June 2024 quarter soared 40% compared to the June 2023 one.

While we won’t receive TSM’s end-market breakdown until it reports its quarterly results on July 18, because its two largest end markets are High-Performance Computing (HPC), which includes data center and AI, and smartphone, we can surmise year-over-year strength in both. Given the seasonality of the smartphone market, we suspect HPC revenue remained the largest market for TSM, not exactly a stretch given recent comments from Micron MU, Corning GLW, and others.

In response TSM's revenue results, we will boost our Nvidia NVDA price target to $148 from $132, and reiterate our $95 target for Marvell MRVL. While today’s report from TSM is a clear positive for Marvell’s business and our shares, as we collect confirming signs for the expected rebound in Marvell’s enterprise networking and carrier infrastructure spending, we’ll circle back to our MRVL price target.

Another report this morning from research firm Canalys showed that Apple’s AAPL June quarter Mac shipments rose 6% year over year, taking share from the larger PC industry, which rose 3.4% during the period to 62.8 million units. In its report, Canalys said that the vast majority of channel partners surveyed indicated that Windows 10 end-of-life is likely to impact customer refresh plans most in either the second half of 2024 or the first half of 2025. Paired with AI PCs, suggests that shipment growth will only gather steam in upcoming quarters.

In response to both reports, we are boosting our AAPL price target to $250 from $230.

TSM’s findings also have us rethinking our price target for Universal Display OLED, while both reports are leading us to do the same from Qualcomm QCOM. With Samsung’s Unpacked 2024 event on tap for today, which should be a positive for both companies and their shares, we’ll formally revisit those two targets once Samsung’s event has concluded later today.

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At the time of publication, TheStreet Pro Portfolio was long NVDA, AAPL, MRVL, OLED and QCOM.