KUALA LUMPUR, May 8 (Bernama) -- Bursa Malaysia snapped a five-day rally to close lower on Friday on profit-taking and in line with weaker global markets as renewed military developments between the United States and Iran hurt risk appetite, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 10.79 points, or 0.61 per cent, to its intraday low of 1,748.06 from Thursday’s close of 1,758.85. The benchmark index, which opened 0.78 of-a-point lower at 1,758.07, moved to its intraday high of 1,760.19 in early trade before succumbing to selling pressure in late trading. Market breadth was negative with losers beating gainers 708 to 451. A total of 586 counters were unchanged, 907 untraded, and nine suspended. Turnover eased to 3.31 billion units worth RM3.00 billion compared with 3.78 billion units worth RM4.24 billion yesterday.
Taiwan Semiconductor Manufacturing Co continues to benefit from the artificial intelligence wave, posting strong double-digit sales growth as global tech giants accelerate investment in AI infrastructure.
Strong Monthly Sales Highlight AI Momentum
TSMC reported April revenue of NT$410.7 billion (US$13.1 billion), representing a 17.5% year-on-year increase.
The performance reflects sustained demand from hyperscalers, which are aggressively expanding AI capabilities.
Analysts estimate Q2 revenue growth of around 35%, indicating continued strength through mid-2026.
AI Capex Boom Driving Semiconductor Demand
The surge in demand is supported by large-scale spending commitments from leading tech companies, including:
- Nvidia
- Advanced Micro Devices
- Alphabet
- Amazon
- Meta Platforms
- Microsoft
These firms are collectively allocating about US$725 billion toward AI investments this year, significantly boosting demand for advanced semiconductors.
TSMC Positioned at Core of AI Supply Chain
TSMC’s role as the leading producer of cutting-edge chips places it at the center of the AI ecosystem.
Its ability to deliver advanced-node manufacturing at scale supports:
- Strong pricing power
- High utilisation rates
- Clear long-term growth visibility
This has helped drive the company’s share price to record highs in 2026.
Capex Guidance Signals Confidence
TSMC has:
- Raised its full-year revenue outlook
- Indicated capital spending will move toward the upper end of its US$56 billion guidance range
This reflects management’s confidence in ongoing AI-driven demand.
Investor Takeaways
- TSMC sales rose 17.5% YoY, supported by strong AI demand.
- Hyperscalers are committing US$725 billion in AI capex, reinforcing sector growth.
- TSMC remains a key player in the global semiconductor supply chain.
- Q2 revenue growth is estimated at ~35%, showing continued momentum.
- Higher capex signals confidence in long-term demand, but also rising investment intensity.
Comments
Post a Comment