Nvidia Stock Trades Lower In Sympathy With TSMC on Thursday - What's Going On?
Portfolio Pulse from Anusuya Lahiri
Nvidia Corp (NVDA) and other chipmaking stocks are trading lower due to Taiwan Semiconductor Manufacturing Company Ltd's (TSM) disappointing Q2 results. TSMC's revenue declined by 13.7% YoY to $15.68 billion, and it projected a 10% fall in sales in FY23. TSMC also postponed production at a planned facility in Arizona until 2025. Samsung Electronics Co, Ltd (SSNLF) is reportedly eyeing Nvidia orders as TSMC's packaging capacity remains tight. Meanwhile, Nvidia received an Outperform rating and a price target of $570 from Wolfe Research, and an Overweight rating and a price target of $600 from Barclays.
July 20, 2023 | 1:42 pm
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POSITIVE IMPACT
Samsung's stock could potentially benefit from the shift of Nvidia orders due to TSMC's tight packaging capacity.
Samsung's stock could potentially benefit from the shift of Nvidia orders due to TSMC's tight packaging capacity.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Nvidia's stock is trading lower due to TSMC's disappointing Q2 results and the potential shift of orders to Samsung. However, it received positive ratings from Wolfe Research and Barclays.
Nvidia's stock is trading lower due to the negative impact of TSMC's disappointing Q2 results and the potential shift of orders to Samsung. However, the positive ratings from Wolfe Research and Barclays could mitigate some of the negative impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
TSMC's stock is likely to be negatively impacted by its disappointing Q2 results and the postponement of production at a planned facility in Arizona.
TSMC's disappointing Q2 results and the postponement of production at a planned facility in Arizona are likely to negatively impact its stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100