While TSMC exhibited an up-and-down graph throughout 2023, it experienced a decrease in revenues in general. However, according to analyst estimates, the company will experience a strong recovery in the next first quarter. Analysts say the oversupply in the industry is starting to end, which could help TSMC set a record in first-quarter revenue next year.2024 will be good for TSMC
Although the current year is not a year of record revenues for TSMC, the transition to the 3nm process and mass production is a historic event. The first 3-nanometer products shipped earlier this year and are reaching consumers through Apple’s latest smartphones and laptops.
According to Taiwanese media, AMD, Apple and Nvidia will significantly increase their orders for the first quarter of 2024. The first quarter is usually the slowest period for TSMC because there are very few product launches immediately afterwards. However, analysts believe that this time, the increase in orders from its largest customers will enable TSMC to deliver strong first quarter revenue. Analysts add that TSMC’s sequential revenue decline in the 1st quarter will not remain in single-digit percentages, and that the company will record sequential revenue increases starting from the 1st quarter.
The two main reasons behind the expected increase in the quarter are the high capacity utilization rates in TSMC’s 5 nanometer process and the high prices of 3 nanometer products. On the other hand, queues have already started to form for new orders. Nvidia announced the HGX H20 and L20 platforms in order to sell to China without encountering US obstacles. Finally, another potential catalyst for TSMC is AMD’s MI300X products. These products designed for the use of artificial intelligence created great excitement and increased AMD’s shares. With the MI300X, AMD is expected to gain double-digit AI market share next year.
