Shares of US chipmakers rose even before the start of trading on Thursday, after Northeast Asian technology giant Taiwan Semiconductor ($TSMC) announced strong sales and a forecast that boosted investor expectations.
Taiwan Semiconductor Manufacturing Cothe world’s largest contract chipmaker, raised its annual revenue growth expectation and said sales of artificial intelligence (AI) chips would account for around 15% of its annual revenue.
This generated optimism about the demand for processors used to power artificial intelligence applications, so its actions they rise more than 11% this Thursday.
The forecast from the leading producer of advanced AI chips reinforced investor confidence in the prospects of chipmakers, whose market valuations have risen sharply over the past two years due to an increase in spending on chips by companies. large technology companies.
The supply chain
TSMC customer Nvidia, a leader in AI chips, and smaller competitor AMD are up more than 2%. Networking chip maker Broadcom, smartphone semiconductor producer Qualcomm and memory chip supplier Micron rose between 1.5% and 3%.
Shares of struggling chipmaker Intel also rose slightly. Intel has been expanding its chip manufacturing facilities in an attempt to challenge TSMC in advanced contract manufacturing, an effort that analysts believe will take years.
TSMC’s outlook also offered some relief to investors after chipmaking equipment giant ASML significantly cut its forecasts on Tuesday, sparking fears of a slower-than-expected recovery in demand for semiconductors that are not used in AI.
US-listed shares of TSMC are up more than 80% so far this year, while Nvidia has doubled in value, as investors pour billions of dollars into semiconductor stocks amid the burgeoning “picks and shovels” trend on Wall Street.
Source: Ambito
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