Positive Signs For Chipmaker TSMC – And Apple

Positive Signs For Chipmaker TSMC – And Apple

almost 4 years ago2 mins

Mentioned in story

Strong first-quarter results from leading microchip-maker TSMC on Thursday hinted that Apple – one of its biggest customers – might be able to keep already-stretched doctors away for the rest of the year 🍎

What does this mean?

TSMC lowered its revenue forecast for 2020, but said it expected 30% growth this quarter compared to the same time last year. That’s pretty revealing: the chipmaker’s two biggest customers represent around 40% of its revenues, and Apple – which uses its high-end microchips in iPhones – is probably one of them. So if TSMC expects to grow sales despite the rapidly weakening economic environment, it stands to reason Apple should too.

TSMC leads the way in selling chips for everything from datacenters to video streaming, which means it’s seen as a bellwether for other chipmakers globally. Those chipmakers have good reason to feel more optimistic about the months ahead, then – especially if Apple’s rivals start rolling out their own new chip-laden smartphones 😎

Daily Brief Image

Why should I care?

Investors – buoyed by the potential good news for chipmakers tucked away in TSMC’s update – set about buying their stocks. Dutch-American ASML saw its shares rise by about 2%, about the same as AMS’s stock over in Europe. Some investors bought up Apple’s stock too: they may be hoping the smartphone giant’s newly announced cheaper iPhones will tempt consumers who previously couldn’t afford one, and that the company’s 5G iPhone will generate strong sales this fall 📱

Official data showed iPhone shipments within China rose 19% last month, which could mean demand for Apple’s products has picked back up even faster than it did for Nike 👟 That would make sense: folks in China – who might still be hesitant about going to the gym – are less likely to want new workout gear than they are a new phone that they can enjoy indoors.

Daily Brief Image


All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG