![Taiwan Semi reported 'extraordinary' Q4 results, says Jim Cramer](https://i0.wp.com/image.cnbcfm.com/api/v1/image/108090145-17375047363ED3-MM-B-BLOCK-SHORT-012125.jpg?ssl=1)
CNBC’s Jim Cramer on Tuesday reviewed the market reaction to Taiwan Semiconductor Manufacturing Company’s earnings report last week, saying the sector — especially capital equipment companies — got a boost from chip maker’s high figures and strong outlook.
“With its bullish report last Thursday, Taiwan Semi was able to remind investors how powerful this theme is,” he said. “Essentially resetting the entire narrative for everyone operating in the high-end semiconductor world, including the semiconductor capital equipment companies that stood out as some of the biggest beneficiaries.”
TSMC is the world’s largest contracted chip manufacturer, producing advanced processors for high-profile companies with deep pockets, like Nvidia and Apple. The quarter beat expectations, with its profit rising 57% from a year earlier to a record high, CNBC reported. TSMC said its high-performance computing division, which includes artificial intelligence, accounted for much of its sales. The company also indicated it would expand manufacturing capabilities and increased its capital expenditures budget over the next year, vowing to spend much of it on “advanced process technologies.”
Cramer explained that “advanced process technologies” means equipment used for GPUs and other accelerators, or products made by Nvidia and competitors. To Cramer, TSMC’s intention to increase spending on equipment lifted stocks of its suppliers, including Applied Materials, Lam Research and KLA.
But he said this rally is due to more than just TSMC’s numbers. Instead, the breakout in the group reflects investors’ renewed faith in the opportunity that lies ahead for these companies, he suggested. Some on Wall Street, he continued, now feel that the end of former President Joe Biden‘s term means restrictions on some advanced semiconductor technologies may be coming to an end.
“Frankly, I don’t think the opportunity for these semiconductor capital equipment companies was ever really that diminished, even when their stocks were getting clobbered last year,” Cramer said. “There was just a perception problem, and it’s always hard to move the crowd when a group’s out favor.”
TSMC declined to comment beyond remarks made during the earnings conference.
![Jim Cramer on if TSMC's earnings sparked a broader rally](https://i0.wp.com/image.cnbcfm.com/api/v1/image/108090140-17375043813ED3-MM-B-BLOCK-012125.jpg?ssl=1)
Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.
Disclaimer The CNBC Investing Club Charitable Trust holds shares of Apple and Nvidia.
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram
Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com
Taiwan Semi’s bullish earnings revives optimism
Taiwan Semiconductor Manufacturing Company (TSMC) reported strong earnings in the second quarter of 2021, beating analysts’ expectations and causing a surge in optimism among investors. The company’s revenue increased by 20% year-over-year, driven by strong demand for its advanced semiconductor chips.
TSMC’s positive performance is seen as a sign of the resilience of the global semiconductor industry, which has been facing challenges such as supply chain disruptions and a global chip shortage. The company’s strong earnings also bode well for the broader technology sector, as TSMC is a key supplier to major tech companies like Apple, Qualcomm, and Nvidia.
Investors are hopeful that TSMC’s robust earnings could signal a turnaround in the semiconductor market, which has been struggling to keep up with surging demand for chips in various industries, including automotive, consumer electronics, and telecommunications. The company’s upbeat outlook for the rest of the year has further boosted confidence in the sector’s recovery.
Overall, TSMC’s bullish earnings have revived optimism among investors and industry observers, signaling a brighter future for the semiconductor industry and the technology sector as a whole.
Tags:
Taiwan Semi, earnings report, bullish, optimism, Taiwan Semiconductor, stock market, tech industry, growth, financial news
#Taiwan #Semis #bullish #earnings #revives #optimism