TSMC Slashes 2023 Revenue Outlook by 10%, Analysts Weigh In on Performance as Cyclical Headwinds Overshadow AI Strength
Portfolio Pulse from Anusuya Lahiri
Taiwan Semiconductor Manufacturing Company Ltd (TSMC) has cut its 2023 revenue outlook by 10% due to cyclical headwinds, despite AI strength. The company expects AI revenue to reach a low-teens percent of the total by 2028. TSMC's CapEx target remains at $32 billion, with growth expected to level off. Analysts from Needham, Susquehanna, and Wedbush have reiterated a Buy, Positive, and Outperform rating respectively, with price targets ranging from $118 to $135. TSMC's stock traded lower by 4.58% at $98.36.
July 20, 2023 | 4:30 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
TSMC has cut its 2023 revenue outlook by 10%, citing cyclical headwinds. Despite this, analysts remain positive, with price targets ranging from $118 to $135. The company's stock traded lower by 4.58% at $98.36.
TSMC's cut in its 2023 revenue outlook is a negative signal for investors, which is reflected in the stock's recent drop. However, analysts remain positive about the company's long-term prospects, particularly in AI, which could mitigate some of the short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100