Skip to main content

Featured Post

TSMC Posts 54% Profit Surge in 3Q, Boosted by AI Chip Demand and Optimistic on Future Growth

Taiwan Semiconductor Manufacturing Co (TSMC) , the world’s largest contract chipmaker, reported a 54% jump in quarterly profit , surpassing forecasts, thanks to soaring demand for AI-related chips . This robust performance underscores TSMC’s dominance in producing advanced chips for AI applications, with key customers like Apple and Nvidia . TSMC's net profit for 3Q2024 reached T$325.3 billion (US$10.11 billion) , exceeding the T$300.2 billion forecasted by analysts. The company's revenue rose 36% year-on-year to US$23.5 billion , driven by strong demand for smartphone and AI chips utilizing its cutting-edge 3nm and 5nm technologies . The AI boom has been a major growth driver, with AI processors expected to account for a mid-teens percentage of TSMC's overall revenue for 2024. TSMC's capital spending for the current quarter is set to more than double to US$11.5 billion , and it expects capital expenditure to increase further in 2025 as demand remains robust. Chai
Post a Comment

Global Chip Stocks Lose US$420 Billion Following ASML Warning

Chip stocks worldwide have shed more than US$420 billion in combined market value following a tepid outlook from ASML Holding NV, a key supplier of advanced chipmaking equipment. This warning has triggered a global selloff, halting a recent rally that had pushed chip stocks to a three-month high.

ASML, based in the Netherlands, saw its shares tumble by the most since 1998 after cutting its 2025 revenue guidance. The company reduced the top end of its net sales forecast for 2025 from €40 billion to €35 billion, citing weakness in areas beyond AI applications. The announcement, which was mistakenly released a day early, shocked investors with the magnitude of the correction, as noted by Citigroup analyst Atif Malik.

The selloff affected Nvidia Corp, which fell nearly 5%, alongside other major chipmakers, including Tokyo Electron Ltd (down 10%) and Taiwan Semiconductor Manufacturing Co (down 3.3%). While some investors believe ASML's struggles may be specific to the company, there are broader concerns about reduced spending from key players like Intel Corp.

Despite the losses, some analysts remain optimistic that AI demand and China's economic stimulus may help the chip sector recover. Jung In Yun, CEO of Fibonacci Asset Management Global, suggested that chipmakers may be strategically reducing orders from ASML, but there is potential for a rebound in chip demand as China's economy recovers.

Investors will now turn their focus to ASML's post-earnings call to gain more clarity on the company’s outlook.

Labels:

Comments

Post a Comment

Popular posts from this blog

INTC Share Watch and News

Stock Info Market Monitor Company Profile Intel Corporation designs, manufactures, and sells integrated circuits for computing and communications industries worldwide. It offers microprocessor products used in notebooks, netbooks, desktops, servers, workstations, storage products, embedded applications, communications products, consumer electronics devices, and handhelds. The company also offers system on chip products that integrate its core processing functionalities with other system components, such as graphics, audio, and video, onto a single chip. It also provides chipset products that send data between the microprocessor and input, display, and storage devices, such as keyboard, mouse, monitor, hard drive, and CD or DVD drives; motherboards that has connectors for attaching devices to the bus, and products designed for desktop, server, and workstation platforms; and wired and wireless connectivity products, including network adapters and embedded wireless cards used to translat
1 comment
Read more

Rate Cuts Set to Boost Capital Inflows into Malaysian Property Sector

  RHB Research has reiterated its "overweight" rating on the Malaysian property sector , anticipating significant capital inflows and increased buying interest as global interest rates begin to decline. Institutional investors, property buyers, and developers are expected to ramp up capital deployment, supported by the US Federal Reserve's recent rate cuts , which signal the start of a more accommodative monetary environment. The US Fed reduced interest rates by half a percentage point this week, marking an aggressive move to ease monetary conditions. RHB predicts Malaysia, particularly in high-growth areas , will remain an attractive market for both local and foreign property investors. The stabilizing ringgit and favorable interest rates further enhance Malaysia's position as a prime destination, especially for data centre (DC) investments and real estate transactions. "Malaysia's strategic location as a hub for data centre investments should contin
Post a Comment
Read more

A Trader’s Guide to Navigating Malaysia's Budget 2025

Malaysia’s consumer and construction stocks are poised to benefit from Budget 2025 , as Prime Minister Datuk Seri Anwar Ibrahim is expected to introduce measures aimed at lowering the cost of living and unveiling infrastructure projects . As both Prime Minister and Finance Minister, Anwar will likely announce targeted cash transfers , civil servant salary hikes , and potential revisions to the minimum wage to boost disposable incomes, supporting retailers like AEON Co and Padini Holdings . In the construction sector, analysts expect the budget to include new projects such as the Mass Rapid Transit Line 3 and Pan Borneo Highway , with companies like Gamuda , Sunway Construction , and IJM Corp set to benefit. There could also be updates on the Johor-Singapore High-Speed Rail and cross-border economic zones, reigniting interest in the sector. The government’s commitment to growing semiconductor industries may lead to support measures for data center developers like YTL Power Int
Post a Comment
Read more