TSMC Shares Surge 7% on Robust Chip Demand Outlook
TSMC Shares Surge Over 6% on Robust Chip Demand Outlook
(Bloomberg) -- Taiwan Semiconductor Manufacturing Co. rose the most in a month after the company signaled confidence in a recovery by upholding an ambitious capital expenditure target.
The world’s largest contract chipmaker closed 7% higher at NT$306.50, outpacing a 2.1% rise by the benchmark Taiex.
TSMC, a barometer for the tech industry thanks to its heft in the global supply chain, said on Thursday it expected revenue of between $10.1 billion and $10.4 billion from April to June. That forecast followed a near-doubling of net income to NT$116.99 billion ($3.9 billion) for the three months ended March.
The Taipei-listed company also said it is maintaining its $16 billion capex plans in 2020.
TSMC lowered its revenue outlook for the year by a few percentage points to reflect the new Covid-19 reality, suggesting that in the longer term the chipmaker to Apple Inc. and Huawei Technologies Co. will still have to contend with uncertainty brought about by the virus.
Read more: Analysts Remain Bullish on TSMC as Capex Unchanged: Street Wrap
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