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Investors are waiting for TSMC’s earnings for signs of what’s to come for the chip sector.
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AMSL caused panic on Tuesday when it cut its 2025 sales guidance.
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TSMC, an important customer of ASML, already reported sales that exceeded expectations.
This week’s selloff in chip stocks and lingering questions about demand for artificial intelligence technology have raised the stakes for Taiwan Semiconductor Manufacturing Company’s upcoming earnings report.
The chipmaker will announce its full third-quarter results in the early hours of Thursday. The results will serve as an important update for investors eagerly watching for signs of a slowdown in the sector after ASML’s gloomy guidance triggered a sell-off in key semiconductor stocks on Tuesday.
TSMC, one of ASML’s largest customers and a top supplier to technology companies such as Nvidia and Apple, announced last week that it posted third-quarter revenue of $759.69 billion New Taiwan dollars, or approximately $23.57 billion. which is better than expected.
TSMC fell 1% lower Wednesday afternoon, with shares trading around $187.82. The stock is up 84% this year, thanks in part to the company’s strong financial results so far in 2024.
Chip and semiconductor stocks, meanwhile, traded slightly higher, with the SPDR S&P Semiconductor ETF up nearly 1% at midday.
Traders are waiting for guidance from TSMC executives on the company’s earnings figures relative to demand in the current quarter and the coming year.
Demand fears emerged recently when Nvidia reported second-quarter results in August. The chip giant’s profits exceeded expectations, but fell short of the highest expectations. This raised questions about waning interest in AI-enabling technology, as companies have yet to report meaningful returns on massive capital expenditures in the space.
Since then, Nvidia has once again traded close to record highs. Recent comments from CEO Jensen Huang indicate extremely high demand for the next-generation Blackwell chip, which Huang says will sell out in the next twelve months.
Read the original article on Business Insider
