KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Taiwan Semiconductor Manufacturing Co. (TSMC) just delivered a blowout 39% surge in revenue for Q2, exceeding analyst forecasts and reinforcing its position as a cornerstone of the AI boom.
Q2 Highlights:
Revenue: NT$934 billion (≈US$32 billion), beating the NT$928 billion analyst consensus.
Sales Drivers: Strong demand from Nvidia and Apple for high-performance chips powering AI and mobile devices.
Guidance: TSMC is on track to hit the high end of its US$29.2 billion sales forecast for the quarter.
What’s Fueling the Surge?
The generative AI gold rush, led by Nvidia’s $4 trillion milestone, continues to lift chipmakers like TSMC, who supply the vital infrastructure for AI training and deployment.
CEO C.C. Wei confirmed that AI chip demand still exceeds supply, and reiterated that TSMC's 2025 sales are expected to grow in the mid-20% range (USD terms).
Massive Investments Ahead
TSMC plans to spend US$100 billion to expand production:
New fabs in Arizona, Japan, Germany, and Taiwan.
Strengthening global manufacturing resilience and meeting the AI-driven surge in chip orders.
Margins Under Watch
While revenue is booming, margins may face pressure:
Operating margin expected to hover around 47%, near the low end of guidance.
Weaker US dollar impacts profitability despite sales growth.
Investor Caution: Tariff Turbulence
Despite TSMC’s impressive performance, macroeconomic risks loom:
Ongoing US-China trade tensions and tariff threats from the Trump administration are clouding global tech outlooks.
Economists are downgrading GDP forecasts, potentially affecting future demand for smartphones and electronics.
Key Takeaway for Investors:
TSMC remains a must-watch AI proxy stock, riding on Nvidia’s success and institutional chip demand. However, investors should watch margin trends and trade policies closely as the semiconductor cycle heats up.
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