-- Taiwan Semiconductor Manufacturing Co.’s $420 billion equity rally this year will get a valuation test next week when it reports earnings, with analysts expecting the chipmaker to raise full-year sales forecasts.FCC Says It’s Investigating Massive Breach of AT&T Customer Data
The sole supplier of Nvidia and Apple Inc.’s most advanced chips had previously guided for full-year revenue to grow by low-to-mid 20%. That’s increasingly seen as too cautious, especially after its sales beat for the June quarter and earnings reported by competitors such as Samsung Electronics Co. and major customer Broadcom Inc.On Wednesday, TSMC indicated that sales in the second quarter had jumped by 40%, compared with the average forecasts for a 36% rise.
Investors will be scrutinizing TSMC’s tone at the earnings call for further clues on the recovery in the chip market and AI demand trends. The AI chip orders have helped make up for lackluster smartphone sales, which are only just recovering from a slump. Shares of TSMC traded 0.3% higer in New York trading at 9:46 a.m. on Friday.
Still, there are signs that some have grown uneasy with its valuation. Foreign investors were net selling the shares for five consecutive sessions through Thursday, according to data from the Taiwan stock exchange. A Wall Street revival provided a second-quarter boost to big banks at a time of rising challenges for their Main Street consumer operations.The NATO summit in Washington showcased a series of significant deals for top U.S. defense companies and others, including RTX, Lockheed Martin, Boeing, Norway's Kongsberg Defense and Sweden's SAAB. Shoulder-fired Stingers have been in hot demand in Ukraine, where they have successfully stopped Russian assaults from the air.