TSMC’s outlook offered much-needed reassurance to investors accustomed to a depressed market. The main chipmaker to Apple Inc and Nvidia is budgeting capital expenditure of US$28 billion to US$32 billion and expecting revenue growth to return to at least 20% for the year. Executives also spent a lot of time talking about how the advent of AI should turbocharge the industry because of its immense computing needs.
Semiconductor stocks from Tokyo Electron to Nvidia Corp gained more than US$160 billion of market value after Taiwan Semiconductor Manufacturing Co’s outlook for capital spending and revenue lifted hopes of a broad tech recovery in 2024.
TSMC’s better-than-projected numbers underscored expectations for a bounce-back in smartphone, chip and computing demand, following more than a year of post-Covid malaise. On Friday, the world’s most valuable chipmaker gained more than 6% in Taipei — its biggest gain in almost a year — after a near-10% climb in the US. Key suppliers Tokyo Electron and Advantest Corp gained more than 5% in Tokyo. Together, they fueled a gain in semiconductor stocks from the US to Asia of roughly US$165 billion, based on Bloomberg’s calculations.
