Wall Street financial institutions shifted to a bearish stance on Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM), cautioning that the largest chipmaker will problem conservative guidance for its revenue outlook due to weak desire.
The primary Apple Inc (NASDAQ: AAPL) supplier will likely report earnings for the final quarter on January 12, Bloomberg reports.
Both Goldman Sachs Group, Inc (NYSE: GS) and UBS Team AG (NYSE: UBS) count on TSMC’s product sales to be flat in 2023, with UBS slashing its rate focus on by 7.4%.
“TSMC is not immune to the market stock digestion and finish-demand correction into 2023,” UBS analysts pointed out. “We reduce our 2023 income estimate from 3% development to flat YoY in USD, thinking of the weaker consumer need and decelerating significant-efficiency computing development,” Bloomberg wrote.
TSMC’s shares plunged 34% from a peak final January as investing on major-ticket merchandise from smartphones to laptops and servers fell following central financial institutions hiked desire prices to counter the mounting inflation.
TSMC’s income rose around 43% in 2022 and will possible sluggish to 6.3% in the existing 12 months, Bloomberg analysts projected.
Although a healthful recovery is most likely in the year’s second half, “the rate of demand rebound could be slower than the corporation expects as there is continue to lack of apparent symptoms of stop desire recovery,” Goldman Sachs analysts pointed out.
Rate Action: TSM shares traded bigger by 1.09% at $74.85 in the premarket on the past examine Wednesday.
Most up-to-date Scores for TSM
Day | Organization | Motion | From | To |
|---|---|---|---|---|
Jan 2022 | Atlantic Equities | Updates | Neutral | Chubby |
Oct 2021 | Cowen & Co. | Initiates Protection On | Current market Execute | |
Jul 2021 | Needham | Initiates Protection On | Get |
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