TSMC shares rise by 3% this week beating all odds – News235

After the Taiwanese chipmaker reported second-quarter earnings that beat expectations, shares of TSMC (2330. TW) rose more than 3% on Friday, outpacing the broader market (.TWII). Analysts are upbeat in terms of the company’s outlook despite some downside concerns.

credit score: Reuters

The world’s most important contract chipmaker and major provider of Apple Inc (AAPL.O), Taiwan Semiconductor Manufacturing Co Ltd (TSMC), reported a 76.4 percent increase in revenue for the April–June 2022 period, to T$237.0 billion ($7 billion). .92 billion).

While that signals cooling demand from the client’s electronics outlook, which anticipates chip stock cuts during the upcoming quarter to 2023, the company expressed “very confident” about its longer-term outlook.

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As a result of declining client demand and skyrocketing inflation, the market has been wary of a possible excess of chips, especially after Micron Know-how Inc. (MU.O) warned last month {that a} chip shortage in some industries was quickly growing into a glut.

The results of TSMC should immediately eliminate the considerations regarding chips available in the market

JP Morgan analysts hailed TSMC’s acknowledgment of the decline as a “good start,” anticipating a small increase in the chipmaker’s inventory value soon.

“But confirmation of declines from different spring companies in this earnings season is important for a definite clearing opportunity.”

Buyers are implicated that falling client demand in China, the US and Europe will hurt Taiwan’s export-reliant economic system, as TSMC shares have fallen about 21% so far this year, in line with the larger native market.

In response to Morningstar analysts, Qualcomm Inc.’s increased allocation of TSMC. (QCOM.O) and Nvidia Corp. (NVDA.O) will largely offset the outcome of a general weak demand over the next year.

TSMC
credit score: Reuters

“We observe that both have contracted TSMC as their primary (if not the only) foundry for many of their clients’ 2023 merchandise due to low production output at Samsung Electronics Co Ltd.

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