TSMC Expect Strong Results to Support Record-High Shares
TSMC’s stock has bounced 30% in the US after the summer selloff
Tweet on Tsmc’s stock fluctuation
TSMC Bulls Expect Strong Results as Stock has bounced 30% in the US after the Summer selloff, as per Bloomberg.#chips #ai pic.twitter.com/vR0MXaEo8g
— The_Journalbiz (@the_journalbiz) October 16, 2024
Bloomberg chart
The rebound in shares of Taiwan Semiconductor Manufacturing Co. to a fresh record faces a key test with its earnings report Thursday after ASML Holding NV’s surprisingly weak forecast spooked chip investors.
Eased concern over Nvidia Corp.’s newest artificial intelligence product and optimism over Apple Inc.’s iPhone have renewed enthusiasm for their chip manufacturer TSMC. That has driven its US-listed shares up 30% from an August trough to touch a new peak.
The stock could get another lift from robust guidance following the company’s AI-driven preliminary sales beat for the latest quarter, market watchers say. Its comments on demand will be closely parsed, particularly after ASML’s cut on outlook in areas beyond AI sparked a slide in global chip stocks.
Strong guidance and potential comments on 2025 demand “will probably push the stock higher,” said Kevin Net, head of Asian equities at Financiere de L Echiquier. The company’s capital spending likely “will end up at the top end of the guidance range at around $32 billion,” indicating a strong outlook.
The stakes have risen after investors fled AI stocks just a few months ago on concerns that the technology will fail to deliver on the market’s inflated profit expectations. The forward earnings per share estimate for TSMC has climbed 37% this year to an all-time high.
