TSMC''s stock increased more than four percent on Friday morning, outperforming the larger market, after the Taiwanese chipmaker announced a projected earnings of the third quarter, though it struck a more cautious note about upcoming demand.
Taiwan Semiconductor Manufacturing Company (TSMC), a global Applesupplier and the world''s largest contract chip manufacturer, posted a profit increase of 80 percent on Thursday in the period July-September 2022, the highest increase in two years.
However, the company has also reduced capital expenditure by at least 10% this year. TSMC, Asia''s most valuable listed company, said it was more conservative in planning investments in 2023, but has yet to predict "a growth year."
Despite capex''s declining capability, Daiwa Capital Markets claims investors should take advantage of the limited stock TSMC shares that has dropped more than 30 percents so far this year.
"Although this correction will likely result in a suboptimal load for TSMC in 1H23, it is well in our expectation, and, more importantly, we remain optimistic that this time, TSMC will be counter-cyclical, weathering better than its peers through this correction until 2023," it said.
In a research study, Morningstar said TSMC stocks were lower on long-term computing growth, particularly growth for artificial intelligence, the Internet of Things, and high-performance computing "may last for decades."
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On Friday morning, shares in TSMC''s smaller Taiwanese competitor, United Microelectronics, increased more than 4%. It reported third-quarter earnings on October26.
2022 Thomson Reuters