With positive outlook, TSMC’s market value increased by NTD181.5bn

TSMC (2330-TW) held an investors conference and announced its 2H19 sales outlook yesterday on July 18th. Its revenue/earnings is expected to increase sequentially every quarter and its 3Q19 guidance is better than expectations. The market holds positive outlook toward its FY19 revenue/earnings. After TSMC ADR (TSM-US) rose more than 3% on Thursday, TSMC stock price opened higher today on July 19th, rising more than 2.7% to NTD261, and hitting a new high since the ex-dividend date. Its market value increased by NTD181.5bn to NTD6.77tn.

TSMC has entered its peak season in 3Q19 with robust smart phone demands. In addition, catalyzed by the increasing of 5G infrastructure demand and the growth momentum from HPC chips, its 4Q19 revenue is expected to continue to grow. And, its 2H19 revenue/earnings may grow HoH.

TSMC estimated that its 3Q19 revenue may reach US$9.1-92bn (+18% QoQ), topped the expectations. Moreover, its GM and operating profit margin is also expected to continue to rise. Its 3Q19 GM may grow to 48%.