Taiwan Semiconductor Manufacturing Company Ltd (NYSE: TSM) reported third quarter revenue growth of 35.9% year-over-year to $20.23 billion, beating consensus of $19.91 billion. EPS of $1.79 per ADR beat consensus of $1.70.

Needham Analyst Charles Shi maintained a buy on TSMC and a Price target $110. TSMC’s 3Q22 results and 4Q22 guidance were broadly in line with its respective estimates.

Management expects TSMC to weather the downturn and grow into 2023.

Still, Shi believes the newly announced reduction in capital spending for 2022 from $40 billion to $36 billion, half of which is due to the N7 node’s “capacity optimization,” suggests the company is facing a weaker Expected demand for N7 when modeled.

While the company’s upbeat comments on the N5 and N3 are encouraging, it cut its 2023 revenue growth estimate by 3 points to reflect the likely continued weakness of the N7.

Still, Shi believes that the market will not view TSMC’s 2023 as a positive year but as a negative year; this makes the stock very attractive at its current all-time low.

apple inc AAPL will likely be the first company to use an updated version of TSMC’s latest chip manufacturing technology in 2023 and plans to adopt it for some of its iPhones as well and Mac computers.

TSMC will use its N3E chip manufacturing Technology to commercialize the A17 mobile processor for the premium entry into the iPhone range, set for release in 2023.

N3E is an updated version of TSMC’s current 3nm production technology that will likely power the next generation of Apple’s M3 chip for its Mac offerings

Price promotion: TSM shares traded 4.20% higher at $66.81 on the last check Thursday.