cryptoTaiwan Semiconductor Dodges Chip Sector Weakness

Taiwan Semiconductor Dodges Chip Sector Weakness

Taiwan Semiconductor Manufacturing (TSM), the world’s largest chip foundry, on Friday reported better-than-expected gross sales for September. The information got here after main buyer Superior Micro Gadgets (AMD) warned that its third-quarter gross sales missed views on weak PC demand.


Taiwan Semiconductor, higher generally known as TSMC, reported the equal of $6.68 billion in September gross sales. Its income rose 42.6% in native forex yr over yr however fell 4.5% from August. TSMC posts leads to new Taiwan {dollars}.

TSMC’s gross sales for the third quarter totaled the equal of $20.2 billion. Analysts polled by FactSet had been on the lookout for $19.7 billion. TSMC plans to report Q3 earnings subsequent Thursday.

Taiwan Semiconductor produces chips for fabless semiconductor companies comparable to AMD, Apple (AAPL), Nvidia (NVDA), Qualcomm (QCOM) and others.

Taiwan Semiconductor Steerage In Focus

“We do not imagine TSMC is immune from deteriorating end-market situations, with AMD’s miss the most recent reminder of weakening finish markets,” Wedbush Securities analyst Matt Bryson mentioned in a notice to shoppers. “Nevertheless, we do assume that TSMC will outperform markets generally as a result of continued share good points.”

Bryson charges Taiwan Semiconductor inventory as outperform.

Susquehanna Monetary Group analyst Mehdi Hosseini reiterated his impartial ranking on TSMC inventory.

In a notice to shoppers, Hosseini mentioned he expects TSMC to decrease its income outlook and capital expenditure plans for 2023. He cited clients coping with excessive inventories and weakening demand.

AMD Inventory Tumbles On Q3 Gross sales Miss

Late Thursday, AMD introduced preliminary outcomes for the third quarter that had been a lot weaker than forecast. It now expects income of $5.6 billion, vs. its prior goal of $6.7 billion. It blamed delicate PC chip gross sales, which fell 40% yr over yr within the quarter.

Nevertheless, information heart, gaming and embedded chip gross sales grew considerably yr over yr and had been in keeping with expectations, AMD mentioned. Complete income rose 29% in Q3. It’ll report official outcomes on Nov. 1.

On the inventory market at the moment, Taiwan Semiconductor inventory slid 6.2% to 69.75 amid an total tough day for shares. AMD inventory plummeted 13.9% to shut at 58.44.

The Philadelphia semiconductor index, generally known as SOX, dropped 6.1% on Friday. The SOX consists of the 30 largest semiconductor shares traded within the U.S. 12 months up to now, the SOX is down 40.3%. Makers of reminiscence chips and PC processors have been hardest hit currently as a result of these segments have seen gross sales decline.

Comply with Patrick Seitz on Twitter at @IBD_PSeitz for extra tales on shopper know-how, software program and semiconductor shares.


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