TSMC Reduces 2023 Capex Outlook, Foresees Substantial Growth Starting 2024
Portfolio Pulse from Anusuya Lahiri
TSMC has cut its 2023 capital expenditure outlook to the lower end of the previously forecast $32 billion - $36 billion range, citing weak demand for smartphones and computing chips. The company reaffirmed a low- to mid-single-digit revenue decline in 2023 but expects substantial growth starting in 2024.
June 06, 2023 | 1:24 pm
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NEGATIVE IMPACT
As a critical supplier for Apple, TSMC's struggles with weak demand for smartphones and computing chips may have a negative short-term impact on Apple's stock.
TSMC is a critical supplier for Apple, and its struggles with weak demand for smartphones and computing chips could negatively impact Apple's stock in the short term, as it may affect Apple's ability to source components for its products.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
TSMC's partner Nvidia may face short-term negative impact due to TSMC's weak demand for chips, but the expected growth in AI services on mobile devices could provide a positive outlook.
As a partner to TSMC, Nvidia may face a short-term negative impact due to TSMC's weak demand for chips. However, the expected growth in AI services on mobile devices, which will drive demand for advanced chips, could provide a positive outlook for Nvidia.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
TSMC's reduced 2023 capex outlook and revenue decline may negatively impact its stock price in the short term, but the expected growth in 2024 could provide a positive outlook.
TSMC's lowered capex outlook and revenue decline for 2023 indicate weak demand for its products, which could negatively impact its stock price. However, the company's expectation of substantial growth starting in 2024 could provide a positive outlook for investors.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100