TSMC's Worst Month Since 2008 Has Investors Feeling Whipsawed
TSMC's Worst Month Since 2008 Has Investors Feeling Whipsawed
(Bloomberg) -- Investors in Taiwan Semiconductor Manufacturing Co. can be excused for feeling whipsawed.
The elation they felt in late April when TSMC climbed to a record has turned to disappointment as it is now poised for its worst month since 2008. The slide comes as the Trump administration banned companies from supplying U.S. tech to Huawei Technologies Co.
The slump by Taiwan’s biggest stock is dragging down Taiwan equities. Foreign investors have sold a net $3.5 billion of the island’s shares so far this month, the most among Asian markets tracked by Bloomberg. It has also helped weaken the Taiwan dollar, which is trading near its weakest since early 2017.
JPMorgan, Credit Suisse and BNP Paribas have cut their price targets on TSMC this week. The foundry could lose $1.1 billion in smartphone sales and $200 million from a slower infrastructure build-out due to the Huawei ban, Credit Suisse said. Huawei accounts for about 6.4% of TSMC’s revenue, according to data compiled by Bloomberg.
The Taiwanese firm said on May 23 there’s no “need to change our exports to Huawei” and it won’t change its second quarter earnings forecast.
TSMC fell 0.4% at the close in Taipei, extending its drop this month to 11%. The Taiex lost 0.1%, taking its slide in May to 6%.
To contact the reporter on this story: Cindy Wang in Taipei at hwang61@bloomberg.net
To contact the editors responsible for this story: Sofia Horta e Costa at shortaecosta@bloomberg.net, Philip Glamann, Samson Ellis
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