2330.TW - Taiwan Semiconductor Manufacturing Company Limited

Taiwan - Taiwan Delayed Price. Currency in TWD
307.00
+3.50 (+1.15%)
At close: 1:30PM CST
Stock chart is not supported by your current browser
Previous Close303.50
Open305.50
Bid306.50 x 0
Ask307.00 x 0
Day's Range304.50 - 307.50
52 Week Range206.50 - 311.50
Volume28,786,000
Avg. Volume28,686,288
Market Cap7.948T
Beta (3Y Monthly)0.59
PE Ratio (TTM)23.35
EPS (TTM)13.15
Earnings DateJan 16, 2020
Forward Dividend & Yield15.00 (4.94%)
Ex-Dividend Date2019-12-19
1y Target Est262.88
  • Bloomberg

    Applied Materials Projects Strong Sales on Bounceback in Demand

    (Bloomberg) -- Applied Materials Inc. gave a sales forecast for the current quarter that topped analysts’ estimates, suggesting a slump in orders for chipmaking equipment is ending.The company is the largest maker of machinery used in the manufacture of semiconductors, which are among the most important parts of the electronics supply chain. Customers of the Santa Clara, California-based company include Samsung Electronics Co., Intel Corp. and Taiwan Semiconductor Manufacturing Co., giving it a reach that makes its results and forecasts an important early indicator of business confidence. Intel and other chipmakers order equipment months in advance of starting new factories and production lines.Key InsightsFiscal first-quarter sales will be about $4.1 billion, Applied Materials said Thursday in a statement. That compares with analysts’ average estimate of $3.71 billion, according to data compiled by Bloomberg.Adjusted earnings per share will be 87 cents to 95 cents, the company said. Analysts projected 75 cents a share.The results “reflect a healthy uptick in demand for semiconductor equipment, combined with strong execution across the company,” Chief Executive Officer Gary Dickerson said in the statement.Chip-equipment makers often experience wild earnings swings. Machines cost tens of millions of dollars each. Delaying factory build outs is one of the fastest ways a chipmaker can preserve cash when they’re unsure of future demand.Net income was $698 million, or 75 cents a share in the period ended Oct. 27, compared with $757 million, or 77 cents a share, a year earlier.Revenue was little changed at $3.75 billion. Analysts were looking for $3.68 billion.Stock ReactionShares rose about 4% in extended trading after the announcement. The stock closed at $56.96 in New York and has increased 74% this year.More InformationFor more details, click here.To see the statement, click here.To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Andrew Pollack, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Apple Assembler’s Profit Beat Signals Good iPhone 11 Demand
    Bloomberg

    Apple Assembler’s Profit Beat Signals Good iPhone 11 Demand

    (Bloomberg) -- Hon Hai Precision Industry Co. reported quarterly profit above analysts’ estimates, indicating solid demand for Apple Inc.’s iPhone 11 range.The assembler of most of the world’s iPhones and iPads posted net income of NT$30.7 billion ($1 billion) for the September quarter, compared with an average estimate of NT$27.7 billion.Apple last month forecast holiday revenue that surpassed Wall Street’s projections, suggesting healthy appetite for iPhone 11 models with lower entry prices and vastly improved cameras. It’s now said to expect iPhone shipments to return to growth in 2020 when it finally introduces its own 5G devices -- a boon to hardware suppliers such as Hon Hai and chipmaker Taiwan Semiconductor Manufacturing Co. coping with a decelerating smartphone market. Assembly partners like Hon Hai and TSMC typically begin gearing up for production weeks, if not months, ahead of a device’s commercial launch.The outlook for Apple and its main suppliers remains overshadowed by an ongoing trade war. AirPods, Apple Watch, HomePod and other devices made in China have been hit with 15% tariffs, and U.S. President Donald Trump hasn’t ruled out the possibility of a levy on iPhones starting Dec. 15. Hon Hai said it’s getting into the production of wearable gear next year, potentially competing for more Apple business but also increasing its exposure to the trade war.Hon Hai, which gets half its revenue from its Cupertino, California partner, is now diversifying away from its main Chinese production base to mitigate the impact of potential punitive tariffs. It’s spending more than NT$17 billion building factories in India and Vietnam, responding to customers’ needs, Chief Financial Officer David Huang said at an earnings conference. Those two countries will become regional manufacturing hubs, he added.Read more: Apple Expects IPhone Shipments to Return to Growth in 2020Hon Hai’s investment encapsulates a fundamental trend that’s beginning to shake up production of most of the world’s electronics. Taiwanese companies like Hon Hai, which today make most of the most recognizable brands, began investing in China decades ago, kicking off a transformation that’s made China the world’s factory floor. But faced with growing trade tensions and U.S. tariffs, the leaders of those companies -- which typically operate on wafer-thin margins -- are reconsidering their commitment to China.Read more: The Tycoons Behind China’s Gadget Factories Boom Prepare to ExitAlthough any pivot away from the country is just starting, factories that leave won’t come back anytime soon. In Hon Hai’s case, billionaire founder Terry Gou has even promised to shift jobs and production into the American heartland. Gou has said he intends to press ahead with construction of a display panel factory in the state of Wisconsin, an endeavor once tagged as a $10 billion investment but that has fallen far behind schedule. Vice Chairman Jay Lee said that project was “‘on track.” Hon Hai has completed initial construction on the first, main factory and the company will also target the defense and aviation markets with its panels, he added.Hon Hai executives also forecast a rebound in consumer electronics demand in 2020, which could help prop up its top line. The company reported NT$1.39 trillion in sales for the September quarter, barely changed from a year earlier. Chairman Young Liu said the firm’s goal is to achieve 10% gross margins within three to five years. Its shares closed down 1.4% ahead of the earnings on Wednesday, after gaining 27% this year.“The lower pricing of the iPhone 11 has been effective in driving demand past the Street’s expectations,” Sean Lin, an analyst at President Capital Management Corp., said in a Nov. 4 note.(Updates with executives’ comments from the fifth paragraph)To contact the reporter on this story: Debby Wu in Taipei at dwu278@bloomberg.netTo contact the editors responsible for this story: Edwin Chan at echan273@bloomberg.net, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • This Star Chipmaker Really Doesn't Want to Pick Sides
    Bloomberg

    This Star Chipmaker Really Doesn't Want to Pick Sides

    (Bloomberg Opinion) -- You’ve got to feel for Mark Liu. The chairman of Taiwan Semiconductor Manufacturing Co. just wants to make chips.And he does; the best chips for the best companies in the world. Unfortunately, one of his clients is Huawei Technologies Co. So it’s not surprising that the world’s largest contract chipmaker has found itself in something of a pickle. On the one hand, you’ve got officials in Washington repeatedly asking Taiwan’s government to restrain TSMC from selling chips to Huawei, as the Financial Times reported Monday, citing government sources in both the U.S. and Taiwan. The Chinese electronics giant — which the U.S. has accused of spying — is one of TSMC’s top-five clients and likely contributes roughly 5% to 10% of annual revenue.On the other is China, with a government-led policy to design and build more semiconductors in the coming years. Demand from U.S. companies currently dwarfs that of Huawei and other Chinese names. American tech giants such as Apple Inc., Qualcomm Inc., Broadcom Corp. and Nvidia Corp. together account for 61% of TSMC’s revenue, and comprise the biggest buyers of the Taiwanese company’s most advanced technologies. But China is growing quickly, which leaves TSMC with an unappealing choice: Upset its current large client base in the U.S., or risk losing a future client base in China.There are two things that the U.S. is most scared about when it comes to TSMC. The first is that Chinese companies may get access to the best technology, including semiconductors, that could be used for nefarious purposes, which explains the pressure the FT cites. The other is that the U.S. itself may be cut off from the hardware supply chain, at the heart of which is TSMC.This is why U.S. officials have been hoping that manufacturers like TSMC would expand in America. At present, most of the company’s capacity is spread across three locations in north, central and southern Taiwan. It has two factories in China (the technology made there isn’t as advanced as back home) and one older facility in the U.S. Liu has politely pushed back against U.S. expansion citing the steep costs. In reality, it’s more the daunting logistics of setting up and staffing an advanced factory so far from home base where all the R&D is done. Each of its Taiwan facilities are close enough that engineers can move around and troubleshoot with relative ease. That makes TSMC the belle of the ball. Which sounds nice, except when it comes to choosing a dance partner — and Liu doesn’t want to have to decide. I’ve argued before that everyone will need to pick sides at some point as the digital Iron Curtain falls. For TSMC, this probably won’t come as a declaratory statement, but through quiet and subtle decisions on which cases it will accept and which it will turn down. This brings us back to Liu. In response to the FT report, TSMC spokeswoman Elizabeth Sun told Bloomberg News that the U.S. has not in fact asked it to stop supplying Huawei. Liu met with Commerce Department officials during a U.S. trip earlier this year where they talked about the Chinese company, she said, without elaborating on what they discussed. Meanwhile, a Taiwan cabinet spokeswoman denied that the U.S. asked its government to stop TSMC from shipping to Huawei. (1)I have covered TSMC for almost 20 years, and the notion that the Taiwan government would, or even could, tell the chipmaker what to do is hard to fathom. TSMC is Taiwan’s largest company. It’s publicly listed, has independent management and board of directors, and an impeccable reputation for corporate governance. As a chipmaker to the stars, there’s no other company in the world that can do what TSMC does in terms of technological prowess or sheer capacity. Samsung Electronics Co. and Intel Corp. are its nearest rivals.For now Liu can afford to rebuff pressure — direct or indirect — to cut off Huawei and expand in the U.S. TSMC holds all the cards because American clients desperately need the Taiwanese company’s technology, and Chinese ones aren’t big enough to buy up all of its factory capacity. It may end up offering to build a facility in America as an appeasement move.But TSMC won’t be able to sit on the fence forever. While Liu may want to just make chips, he’ll eventually have to make a choice.(1) I take the denial of Taiwan’s governmentwith a pinch of salt. It’s likely the U.S. consulted with Taiwanese officials on how to deal with the issue, though they may have stopped short of pressuring the company directly.To contact the author of this story: Tim Culpan at tculpan1@bloomberg.netTo contact the editor responsible for this story: Rachel Rosenthal at rrosenthal21@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • 3 Bargain ETFs With U.S. Valuations at Nose-Bleed Highs
    Investopedia

    3 Bargain ETFs With U.S. Valuations at Nose-Bleed Highs

    U.S. stocks have outperformed in recent years and are starting to look overvalued compared to their foreign peers.

  • Financial Times

    US urges Taiwan to curb chip exports to China

    The US government is pushing Taiwan to restrict its biggest chipmaker from producing semiconductors for Huawei, the Chinese telecoms group, and to institute stricter controls on technology exports to China. Washington has over the past year repeatedly asked the government of president Tsai Ing-wen to restrain Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, from selling chips to Huawei, according to Taiwanese and US government officials.

  • Benzinga

    Tech, Emerging Markets Turbulence Lift This ETF

    Others embrace less volatile Taiwanese stocks and the iShares MSCI Taiwan ETF (NYSE: EWT) fit into the latter category. The $3.14 billion EWT, which turns 20 years next year, is higher by 22.60% year to date, or more than double the returns of the MSCI Emerging Markets Index, in which Taiwan is one of the largest country weights after China. “Outside money, fueled by an easing of U.S.-China trade tensions, has helped boost Taiwan asset prices.

  • Bloomberg

    TSMC to Resist U.S. Call to Make Chips Domestically in Near Term

    (Bloomberg) -- Taiwan Semiconductor Manufacturing Corp. Chairman Mark Liu said the company aims to resolve chip security issues by developing new technology to track where chips go and prevent them from being tampered with. He said making chips in the U.S. is not the solution for ensuring security for defense chips.Liu made his comments at a tech forum in Hsinchu, TaiwanThe American government has contacted its customers about making semiconductors in the U.S. TSMC did not hear directly from the Pentagon about U.S. productionU.S. chip production is “very difficult” due to cost issuesTo contact the reporter on this story: Debby Wu in Taipei at dwu278@bloomberg.netTo contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Advanced Micro Devices Gives In-Line Revenue Forecast
    Bloomberg

    Advanced Micro Devices Gives In-Line Revenue Forecast

    (Bloomberg) -- Advanced Micro Devices Inc. gave a quarterly sales forecast that was in line with analysts’ estimates, suggesting the No. 2 maker of computer processors is gaining ground on Intel Corp.Revenue in the current period will be about $2.1 billion, plus or minus $50 million, Santa Clara, California-based AMD said Tuesday in a statement. That compares with an average analyst projection of $2.15 billion, according to data compiled by Bloomberg.Under Chief Executive Officer Lisa Su, AMD has introduced a raft of new products that reviewers and some customers say are competitive or better than those from Intel. That’s sparked a surge in AMD stock. Now investors want to see evidence that the new offerings are generating more orders.AMD took share in desktop computer chips and will continue to make gains in the market for chips that power the servers that are the backbone of corporate networks and the internet, Su said on a conference call with analysts.“We remain on track to achieve our near-term goal of double-digit server CPU share by mid-next year,” she said. Su also rejected Intel’s assertion that it’s only giving up market share in chips for cheap PCs.Intel, which has about 90% of the processor market, gave an upbeat sales forecast last week and executives said they hadn’t seen increasing competition. The company’s profit is about three times the size of AMD’s revenue.On Tuesday, AMD said third-quarter net income rose to $120 million, or 11 cents a share, compared with $102 million, or 9 cents, a year earlier. Excluding certain items, profit in the recent period was 18 cents a share, meeting analysts’ projections. Revenue in the period was $1.8 billion, up 9% from the same period a year earlier. That was in line with Wall Street estimates.AMD’s gross margin, or the percentage of sales remaining after deducting the cost of production, widened to 43% in the third quarter. A year earlier, that measure of profitability came in at 40%. Minus certain items, the margin will be 44% in the fourth quarter, widening the annual number for 2019 to 43%, AMD said.The company’s shares were little changed in extended trading following the report, after ending at $33.03 at the close in New York. The stock has gained 79% this year.AMD has been trying to get back into the lucrative business of server chips. While it’s a lower-volume sector, server chips command much higher prices. AMD has about 3% of this market. The last time it was truly competitive with Intel, more than a decade ago, it had a quarter of that business.Sales of AMD’s new Epyc server chip are reported as part of a unit that includes other chips used by Sony Corp. and Microsoft Corp. in their game consoles. Demand for those processors slumped, dragging down the division’s sales by 27% from a year earlier. AMD said Epyc sales and shipments jumped more than 50% compared with the prior period.In personal computer processors and graphics, AMD’s sales increased 36% year over year. That performance was helped by the higher average selling prices of its newer products, AMD said.AMD is also trying to exploit Intel’s delays in shifting production to more advanced technology. AMD now outsources manufacturing of its best chips to Taiwan Semiconductor Manufacturing Co., which analysts calculate is more than a year ahead of Intel in implementing new processes.(Updates with comment from CEO in fourth paragraph.)To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Alistair Barr, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • GlobalFoundries resolves patent battle with TSMC, patent lawsuits dismissed
    American City Business Journals

    GlobalFoundries resolves patent battle with TSMC, patent lawsuits dismissed

    An industry analyst had questioned GlobalFoundries' decision to sue TSMC, describing it as a costly and time-consuming path to an uncertain conclusion.

  • Wall Street is back in love with chip stocks
    Yahoo Finance

    Wall Street is back in love with chip stocks

    Chip stocks are suddenly back in vogue. Intel’s stock rallied 7.5% in mid-afternoon trading after the company reported record third quarter profits and raised its full-year sales guidance.

  • Thomson Reuters StreetEvents

    Edited Transcript of 2330.TW earnings conference call or presentation 17-Oct-19 6:00am GMT

    Q3 2019 Taiwan Semiconductor Manufacturing Co Ltd Earnings Call

  • Global Tech Fund Manager Bets on Samsung Over Apple and Alphabet
    Bloomberg

    Global Tech Fund Manager Bets on Samsung Over Apple and Alphabet

    (Bloomberg) -- A top-performing global technology fund manager has raised bets on Samsung Electronics Co., making the stock the number one holding in his portfolio, ahead of Apple Inc. or Alphabet Inc.Hyunho Sohn, portfolio manager at FIL Investment Management whose Fidelity Global Technology fund runs about $4.8 billion of assets, said he has been adding positions in the world’s largest memory-chip maker since late 2018. He interpreted the sharp plunge in Samsung’s share price toward the end of that year as an opportunity, and he believes in the long-term growth of the tech giant.“If you ask me why I bought the stock, while the chip cycle was experiencing a downturn, I’d say I have faith in its fundamentals from a long-term perspective,” Sohn said in a telephone interview from London. “Samsung is a typical example of my strategy, which is buying an undervalued stock that the market participants hate temporarily.”Read about Bloomberg Intelligence’s take on the global chip sector hereHis fund, which holds about 60 global technology stocks, has beaten 98% of its peers with an annualized return of about 20% over the past five years, according to Bloomberg-compiled data. The fund’s top five holdings also include Alphabet, Apple, Intel Corp., and Microsoft Corp.The potential growth in demand for memory chips is apparent in the growing needs of cloud storage and service providers alongside the artificial intelligence industry that needs data storage, he said, adding he is also watching the development of 5G networks, which may drive demand for memory chips. Compared with global tech stocks, valuations of Samsung are “still attractive,” he added.Read more: Samsung’s Stock Is Signaling a Bottom for the Global Chip MarketAlthough Samsung’s forward price-to-earnings ratio of 12.6 times is not cheap compared with its historical average, it still lags Micron Technology Inc.’s 14.7 times and Taiwan Semiconductor Manufacturing Company’s 18.6. On forward price-to-book terms, Samsung is trading at 1.2 times, lower than almost all of its peers.Shares of Samsung have risen about 30% this year as overseas investors bought net 4.3 trillion won ($3.6 billion) of shares, the most sought-after stock on Korea’s KOSPI benchmark this year.Read more: TSMC’s $15 Billion Splurge Galvanizes Hope of 5G-Led ReboundTo be sure, it’s not all rosy for the memory chip sector. Micron, the third-largest player in the industry, released disappointing sales forecasts last month. And Samsung’s third-quarter preliminary earnings guidance announced earlier this month is less than half of its operating profits a year earlier. Chip prices have also been mixed. Contract prices for 32-gigabyte DRAM server modules fell 13.8% in the third quarter from the previous three-month period, while those for 128-gigabit MLC NAND flash memory chips rose 12.3%, according to inSpectrum Tech Inc.“I know we don’t see clear signs of recovery in the memory chip industry yet,” Sohn said. “But for me, based on valuations, long-term growth potential, and balance sheet metrics like free cash flow, Samsung is a stock that I am comfortable with having large positions in. I still see an upside for the stock.”(Adds Sohn’s comment on 5G in paragraph after the first chart)To contact the reporter on this story: Heejin Kim in Seoul at hkim579@bloomberg.netTo contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Semiconductor Stocks Are Breaking Out
    InvestorPlace

    Semiconductor Stocks Are Breaking Out

    As usual, last week's headlines were filled with anything but positive news. Trade war scares, partisan politics and out-of-context economic figures hid an incredible story. In this episode of Matt McCall's "Moneyline" podcast, he discusses what was at the heart of this silver lining: semiconductor stocks.Based off the PHLX SOX Semiconductor Sector Index, as tracked by the iShares PSLX Semiconductor ETF (NASDAQ:SOXX), semiconductor stocks hit all-time highs last week, powered by a breakout in some big names. But almost no financial media outlets covered this success. Why? McCall uses this to illustrate the dangers in turning to the likes of CNBC and Fox Business for investment advice. Instead, just read the headlines for entertainment.So what had semiconductor stocks soaring? Nvidia (NASDAQ:NVDA) led the way, reaching an 11-month high last week. Nvidia stock has several catalysts. The 5G rollout, data centers, high-tech gaming and self-driving cars all will use Nvidia chips. Additionally, with rumors of a U.S.-China trade war resolution on the way, any sign of peace could boost NVDA and its peers.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut NVDA didn't lead the breakout alone. Texas Instruments (NASDAQ:TXN), Taiwan Semiconductor Manufacturing Company (NYSE:TSM) and ASML Holding (NASDAQ:ASML) also contributed to last week's record. As 5G keeps growing, make sure to keep your eyes peeled on semiconductor stocks. McCall's PodcastUnfortunately for investors, McCall argues that the financial press also obscured the truth behind September's retail sales numbers. Instead of focusing on the positives, many reported that September's sales were down 0.3% from August. But, year-over-year, September's numbers were up 4.1%. * 10 Stocks to Sell Before December's Meltdown True, auto sales and receipts at service stations both fell. But McCall points out that the service station figure most likely reflects cheaper gasoline. Plus, the core retail sales figure doesn't count those categories due to their historical volatility. On the brighter side, clothing and furniture sales were both up, as were sales from restaurants and bars. To McCall, one thing is very clear: The U.S. consumer is still very healthy.So instead of listening to the naysayers, do your own research. That's why McCall prefers to do his own boots-on-the-ground exploring. Through this practice, he's found several stocks to buy. One name is a growing star in the retail space -- and another sign the consumer is still happy and healthy.Tune into "Moneyline" for more information on Canadian-based Aritzia (OTCMKTS:ATZAF) and more insight on last week's gloomy headlines.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell Before December's Meltdown * 7 Software Stocks to Buy for Growth * 3 Large-Cap Stocks to Buy After Earnings The post Semiconductor Stocks Are Breaking Out appeared first on InvestorPlace.

  • Barrons.com

    TSMC Topples Intel for the Chip Crown

    Taiwan Semiconductor now has a higher market capitalization than Intel. Unless “TSMC drops the ball,” Intel won’t close the process gap, says Bernstein’s Stacy Rasgon.

  • Dow Jones Erases Weekly Gain On Boeing, J&J; JPMorgan, UnitedHealth Rise, Netflix, ASML Fall
    Investor's Business Daily

    Dow Jones Erases Weekly Gain On Boeing, J&J; JPMorgan, UnitedHealth Rise, Netflix, ASML Fall

    The Dow Jones erased weekly gains as Boeing and J&J; dived Friday. Netflix and software stocks sold off. Dow stocks JPMorgan and UnitedHealth rallied during the week on earnings.

  • Smartphone Investors Seem Happy with TSMC’s Earnings
    Market Realist

    Smartphone Investors Seem Happy with TSMC’s Earnings

    Yesterday, TSMC reported better-than-expected Q3 earnings and guidance on the back of high-end smartphone and computing chip demand.

  • Has Intel Stock Found a Catalyst?
    InvestorPlace

    Has Intel Stock Found a Catalyst?

    About a week ago, things were looking much simpler for Intel (NASDAQ:INTC) stock bulls. On Oct. 11, the U.S. and China announced a partial deal in the ongoing trade war. This was welcome news for semiconductor stocks such as INTC that have been trading in a range.Source: dennizn / Shutterstock.com However, it quickly became apparent that the trade deal wasn't really a deal at all. It was more of a truce. Both sides made concessions. But there was no agreement on the issues that would make a difference for semiconductor stocks.This means current or prospective investors in INTC stock are back to trading on other news surrounding the stock. Fortunately for Intel, it has recently made a significant investment that may help change the current narrative.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Making a Big Bet on 5GOn Oct. 15, Intel announced an agreement to purchase a software business, Smart Edge, from Pivot Technology Solutions for $27 million. * The 7 Best Penny Stocks to Buy Smart Edge is software that focuses on "edge computing." Edge computing splits data and stores it closer to users, making computing devices respond faster. The software runs on Intel chips. This is allowing Intel to carve out a niche in the 5G space. This will be a critical opportunity to expand its revenue stream beyond its two large business segments of personal computers and data centers."We plan to take full advantage of our combined technologies and teams to accelerate the development of the edge computing market," Dan Rodriguez, a general manager of the network computer division in Intel's data center group, said in a statement. Why Did Intel Stock Drop?Intel stock was trading around $60 per share until it released first-quarter earnings. The company gave downward revenue guidance of $69 billion, which was $2 billion lower than analysts' estimates. Perhaps more concerning to investors is that if that revenue number held it would mark a decline a 2.5% decline in year-over-year revenue. In 2018, Intel posted revenue of $70.8 billion.But the stock lost nearly 25% of its value. Was this a disproportionate response? Perhaps. But what has to be concerning for investors is that INTC stock has attempted and failed to breach a crucial level of resistance at around $53 two separate times.The general consensus is that Intel stock is paying too steep of a price. However, there's a difference between what a stock should be doing and what it actually is doing. The problem for INTC stock has been a steady stream of news that is giving investors pause. Hampered By Production DelaysUnlike most semiconductor companies, Intel manufactures its own chips. This has been a strategic advantage for the company. But at the moment, it is proving to be an obstacle. The company has struggled in its transition from 14-nanometer chips to 10-nanometer chips. When Advanced Micro Devices (NASDAQ:AMD) introduced 7-nanometer chips, original equipment manufacturers became frustrated with Intel's chip shortage and started giving business to AMD. This has been one of many negative drags on the stock.AMD outsources its CPU production to dedicated foundries. One of those is TSMC (NYSE:TSM), which is now ahead of Intel in the manufacturing process. While Intel says it will resolve its 14-nanometer shortage during 2019, DigiTimes recently reported that the shortage may last until next year. INTC Stock Looks Undervalued at the MomentIntel is trading at price-earnings ratio of below 12 (11.88 as of this writing). That is significantly less than rivals Microsoft (NASDAQ:MSFT), AMD and Qualcomm (NASDAQ:QCOM). Those companies have PE ratios of 29.58, 93.66 and 21.20, respectively. But it's also significantly below its historical trading level of 15-times earnings or higher.If INTC stock were valued at 15 times earnings right now, it would have a stock price of approximately $64.50 per share. But it's not trading at that multiple. And analysts predict that INTC will post a decline in non-GAAP earnings for both Q3 and Q4 earnings on a YOY basis. This makes a case that INTC stock could be going down before it goes up.As of this writing, Chris Markoch did not have a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Penny Stocks to Buy * 7 Bank Stocks to Avoid Now at All Costs * The 10 Best Mutual Funds for Your 401k The post Has Intel Stock Found a Catalyst? appeared first on InvestorPlace.

  • TheStreet.com

    [video]TSMC's Outlook Once More Looks Good for Apple, Chip Equipment Firms and Others

    The chip manufacturing giant issued strong Q4 sales guidance, offered upbeat remarks about 2020 5G phone demand and hiked its capital spending budget.

  • TSMC’s $15 Billion Splurge Galvanizes Hope of 5G-Led Rebound
    Bloomberg

    TSMC’s $15 Billion Splurge Galvanizes Hope of 5G-Led Rebound

    (Bloomberg) -- Taiwan Semiconductor Manufacturing Co.’s plan to spend as much as $15 billion on technology and capacity in 2019 -- roughly 50% higher than originally envisioned -- is spurring hopes that the dawn of fifth-generation networks will rev up global chip and smartphone demand.The primary chip supplier to Apple Inc. told investors it’s sharply increasing its estimate for 2019 capital expenditure to between $14 billion to $15 billion from as much as $11 billion previously, and Chief Financial Officer Wendell Huang said 2020 spending will be similar. The Taiwanese company also projected current-quarter revenue ahead of estimates, an affirmation that the latest iPhones have proven a hit with consumers.Chief Executive Officer C. C. Wei sketched out hopes that the emergence of 5G, the foundation of future technologies from automated factories and smart homes to blazing-fast consumer electronics, will help underpin its business in coming years. TSMC, which is the world’s largest contract chipmaker, and is seen as a barometer for the tech industry thanks to its heft and place in the supply chain, said the advent of 5G-enabled smartphones will result in more chips in devices than before.“We are much more optimistic than six months ago,” Wei said, adding that the 5G momentum was larger than the company expected. TSMC has increased its forecast of the 5G smartphone penetration rate in 2020 to a percentage in the mid-teens from its previous single-digit estimate. Many countries, especially larger ones, were rapidly pushing ahead with 5G rollout plans, Wei added.TSMC Puts All Its Chips on Capex. That’s a Smart Bet: Tim CulpanTSMC’s capital spending plan and outlook prompted price-target hikes from several analysts including at Goldman Sachs and Morgan Stanley. Its shares, which notched a lifetime high just this month, stood largely unchanged Friday in Taipei. More broadly, suppliers including ASML Holding NV, Applied Materials Inc. and Tokyo Electron Ltd. could stand to benefit from TSMC’s capex increase.In addition to 5G, TSMC’s push is driven by growing demand from tech giants such as Apple and Huawei Technologies Co., said Roger Sheng, a semiconductor analyst with Gartner. Although the outlook remains uncertain for 2020, the global semiconductor market is set to make a gradual recovery on the back of the demand related to 5G, AI and automotive applications, according to a note from TrendForce on Oct. 2.“Everyone is waiting to see a bounce back of global smartphone market next year after Apple adopts 5G. The self-designed Huawei chipsets will also push demand, as will Qualcomm’s 5nm chips for next year and AMD’s server chip demand,” Sheng said.On Thursday, TSMC also underlined expectations that Apple, its largest customer, is riding a bounce-back in demand for the iPhones after a lukewarm 2018 iteration. Lower prices and aging handsets are helping drive demand for the iPhone 11 range, and Apple is said to be asking its assemblers to target the high end of an original forecast for 70 million to 75 million unit shipments in 2019.Read more: Apple’s Lower Prices, Users’ Aging Handsets Drive IPhone DemandThe Taiwanese company foresees revenue of $10.2 billion to $10.3 billion in the pivotal December holiday quarter, surpassing an average projection for about $9.9 billion. TSMC gave that sales outlook after reporting net income of NT$101.1 billion ($3.3 billion) for the September quarter, handily beating estimates as the global chip market recovers.Still, fallout from ongoing trade conflicts could crimp an industry revival. While TSMC doesn’t factor trade conflicts into its capex plans, any international trade war will have a negative effect on the semiconductor sector, Wei said. China is an especially important market for TSMC and the semiconductor industry, he added.TSMC and its industry peers had grappled with a plateauing smartphone market, efforts by Apple to move beyond hardware, and U.S. tech-export curbs on No. 2 customer Huawei. But investors are growing more confident that the emergence of 5G will prop up chip prices and demand, while the latest iPhones are firing up consumers. TSMC is in fact straining against capacity constraints in the current quarter, Sanford C. Bernstein analyst Mark Li said.The “iPhone is driving stronger near-term demand. We believe the competitive pricing of iPhone 11 is garnering good traction and has prompted Apple to place more orders at the supply chain,” Li said in an Oct. 10 note.Read more: Taiwan’s Market Fortunes Are Tied to TSMC Like Never Before(Updates with analysts’ hikes and shares from the fifth paragraph)To contact the reporters on this story: Debby Wu in Taipei at dwu278@bloomberg.net;Gao Yuan in Beijing at ygao199@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.