GEOPOLITICAL CONCERNS AND
U.S. MARKET IMPACT:
TSMC shares fell by 3.5% on Friday, influenced by ongoing geopolitical tensions and a sharp decline in U.S. markets.
Despite strong earnings, the tech-heavy Nasdaq experienced its biggest one-day drop since December 2022, and the chip sector saw its largest decline since March 2020.
Strong Earnings and Revenue Forecast:
TSMC posted a second-quarter net profit that exceeded market expectations.
The company raised its 2024 revenue forecast to a growth range of slightly above mid-20% in U.S. dollar terms, up from the previous estimate of low to mid-20%.
AI Boom and Market Position:
Benefiting from the global artificial intelligence boom, TSMC has managed to navigate the tapering demand for pandemic-driven electronics.
TSMC, a major supplier for Apple and Nvidia, is Asia's most valuable listed company.
Market Reactions and Political Comments:
Allen Huang from Mega International Investment Services expressed concerns over the downward trend of Nasdaq and chip stocks, predicting a possible two to three months consolidation.
Comments from U.S. Republican presidential candidate Donald Trump accusing Taiwan of stealing U.S. semiconductor business and suggesting the island should compensate the U.S. for defense efforts also contributed to the decline.
Taiwan Market Impact:
Taiwan's main stock index closed 2.3% lower, and the Taiwan dollar hit its lowest level since May 2016.
TSMC's American Depository Receipts managed a small gain of 0.4% on Thursday, despite an earlier 4% rise during the day.
Investment and Manufacturing Commitments:
TSMC continues to emphasize keeping the majority of its manufacturing and R&D in Taiwan.
The company is also investing $65 billion to build three factories in Arizona, U.S.
Industry Dominance and Competition:
TSMC, often called the "sacred mountain protecting the country" due to its vital role in Taiwan's economy, faces competition from Intel and Samsung, although it maintains a dominant market position.
U.S. MARKET IMPACT:
TSMC shares fell by 3.5% on Friday, influenced by ongoing geopolitical tensions and a sharp decline in U.S. markets.
Despite strong earnings, the tech-heavy Nasdaq experienced its biggest one-day drop since December 2022, and the chip sector saw its largest decline since March 2020.
Strong Earnings and Revenue Forecast:
TSMC posted a second-quarter net profit that exceeded market expectations.
The company raised its 2024 revenue forecast to a growth range of slightly above mid-20% in U.S. dollar terms, up from the previous estimate of low to mid-20%.
AI Boom and Market Position:
Benefiting from the global artificial intelligence boom, TSMC has managed to navigate the tapering demand for pandemic-driven electronics.
TSMC, a major supplier for Apple and Nvidia, is Asia's most valuable listed company.
Market Reactions and Political Comments:
Allen Huang from Mega International Investment Services expressed concerns over the downward trend of Nasdaq and chip stocks, predicting a possible two to three months consolidation.
Comments from U.S. Republican presidential candidate Donald Trump accusing Taiwan of stealing U.S. semiconductor business and suggesting the island should compensate the U.S. for defense efforts also contributed to the decline.
Taiwan Market Impact:
Taiwan's main stock index closed 2.3% lower, and the Taiwan dollar hit its lowest level since May 2016.
TSMC's American Depository Receipts managed a small gain of 0.4% on Thursday, despite an earlier 4% rise during the day.
Investment and Manufacturing Commitments:
TSMC continues to emphasize keeping the majority of its manufacturing and R&D in Taiwan.
The company is also investing $65 billion to build three factories in Arizona, U.S.
Industry Dominance and Competition:
TSMC, often called the "sacred mountain protecting the country" due to its vital role in Taiwan's economy, faces competition from Intel and Samsung, although it maintains a dominant market position.