(Bloomberg) — Taiwan Semiconductor Manufacturing Co. reported a stronger-than-expected 22% rise in quarterly sales, buoyed by orders from its largest customers including Apple Inc.
The world’s largest contract chipmaker saw revenue for the three months to September climb to a record NT$356.4 billion ($12.4 billion), up from NT$293 billion a year earlier, according to Bloomberg calculations based on monthly sales data disclosed by TSMC. Fellow Taiwanese chipmakers United Microelectronics Corp. and MediaTek Inc. on Thursday also reported strong sales, suggesting a broad recovery in the industry.
TSMC in July raised its 2020 outlook, saying that revenue this year will grow by more than 20% in dollar terms. Sales for the first nine months of the year suggests that Apple’s main iPhone chipmaker is on track to meet its growth forecast as the Covid-19 pandemic fueled demand for home computing equipment.
Where new school techies and old school dinosaur investors clash heads is on historical versus future success. No story is better represented by that than the still-smoldering battlefield between armchair investors about Intel (INTC) and AMD (AMD). I don’t need to educate most anyone about the scathing response by Wall Street to Intel’s production delay into 7nm. We don’t need a dissection of the stock chart for AMD to comprehend that they are currently priced to rob Intel of massive market share in processors.
I won’t take a stand on that hairy debate, or on other similar discussions that really illustrate the growing divide between “growth” and “value”, though the same nuts and bolts concept I provide with this analysis on TSMC’s (TSM) recent results can be applied to other hardware debates (and maybe one I can elaborate on if there’s enough interest):
Traditional servers IBM (IBM), Hewlett Packard Enterprise