TAIPEI (Reuters) – Taipei-listed shares of TSMC fell about 6% on Friday after the company’s first-quarter earnings report, in which it maintained its capital expenditure and full-year revenue forecast and flagged only a gradual recovery in the chip sector.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker and a major supplier to Apple (NASDAQ:) and Nvidia (NASDAQ:), forecast on Wednesday that second-quarter sales could rise 30% amid a wave of demand for semiconductors. , used in artificial intelligence (AI) applications. The company’s first-quarter earnings also beat forecasts.
But the company left its capital spending plans for this year unchanged at $28 billion to $32 billion and reiterated that it expects 2024 revenue to grow in the low to mid 20% dollar range.
There was also a “softer and gradual recovery” in the chip sector, excluding memory.
JP Morgan analysts listed a slower recovery in logic semiconductor demand in 2024, which now stands at 10% growth compared with the 10% plus growth forecast in January, due to a gradual recovery in smartphone sales. computers, servers without artificial intelligence and a decrease in demand for cars.
The overall Taipei market was down more than 2.7% on Friday morning.