Look for a big cut to TSMC's 2023 outlook as a bullish sign for chips, one analyst says ahead of earnings

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The best thing TSMC can do in its earnings report Thursday is to cut its outlook for 2023 big

The best thing Taiwan Semiconductor Manufacturing Co. can do in its earnings report Thursday is to cut its outlook for 2023 big, indicating a bottoming in the first half of the year, according to one analyst Monday.Needham analyst Charles Shi, who... The best thing Taiwan Semiconductor Manufacturing Co. can do in its earnings report Thursday is to cut its outlook for 2023 big, indicating a bottoming in the first half of the year, according to one analyst Monday.

Also a bottoming in revenue in the first quarter would indicate a bottoming of volume in the second quarter, setting the fab up for a 2024 rebound, said Shi. Still, October sales surged 56.3% to roughly $6.9 billion, and November sales rose 50.3% to about $7.3 billion from a year ago, during a widely reported chip glut, with the fab posting four other months in 2022 with sales gains of about 50% or more, with December sales figures due out any day now.

 

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