tech
TSMC and ASML post-earnings stock moves could be a sign of what's to come from chip companies
Two of the biggest chipmakers, TSMC and ASML, failed to catch major tail winds from strong earnings. It could be a bellwether for the chip industry as a whole.
TL;DR
- TSMC reported a 58% increase in first-quarter profits, marking its fourth consecutive quarter of record profits, primarily driven by AI chip demand.
- Despite strong results, TSMC shares fell about 3% on Thursday.
- ASML, a key supplier of chip manufacturing equipment, also reported strong results but saw its shares decline.
- The market's muted reaction to positive earnings from these major chip companies suggests exceedingly high expectations and potential investor fatigue.
- Advanced packaging is emerging as a new bottleneck in chip manufacturing, with TSMC and Intel competing in this space.
- TSMC plans significant capital expenditures, including substantial investment in ASML machines, to expand capacity for leading-edge chips and advanced packaging.