These 5 Companies Upped Guidance Despite Global Economic Headwinds

2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Market Cap as of July 21: $451.234 billion

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the world’s most valuable semiconductor companies, headquartered in Hsinchu Science Park, Taiwan. The company operates globally and employs more than 54,000 people.

For the second quarter, analysts estimated an EPS of $1.50 for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). The company surpassed the estimates after posting an EPS of $1.55. Furthermore, the reported revenue of $17.83 billion outperformed the estimates by 1.87%. The net sales rose by 8.8% QoQ and 43.5% on a YoY basis.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s net profit climbed by 76% to $7.95 billion and the company also raised its Q3 and full-year revenue guidance despite the lags in chip demand. The company expects its FY 2022 revenue to grow by 35% compared to the prior year. Previously, the growth was expected to be around 30%. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) expects its Q3 revenues to be around $19.8 billion to $20.6 billion, representing a 33% surge from the same quarter in the previous year.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was one of the companies Baron Funds discussed in its Q1 2022 investor letter. Here is what the firm said:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Ltd. detracted in the first quarter due to rising geopolitical tensions, macroeconomic uncertainties, and concerns over softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver above its 15% to 20% revenue growth target over the next several years.”