Chipmaker Taiwan Semiconductor (TSM) shared falling revenue in the month of September, asserting the declines were better than expected. Yahoo Finance Live's Akiko Fujita and Rachelle Akuffo monitor the stock action surrounding the chip company and its competitors amid artificial intelligence trends and lags in the PC market.
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AKIKO FUJITA: Shares of Taiwan Semiconductor are moving higher this morning as its third quarter revenue fell less than expected down 11% year over year. The chip maker saw demand from developers offset sinking smartphone and laptop chip sales. Certainly a promising sign, Rachelle.
TSMC not the only chip maker out there that has been really concerned about declines we've seen in laptop sales, as well as smartphones. You look at numbers from IDC, they're expecting about 14% decline in laptop sales alone this year. So AI chips, you know, certainly helping with that cause. And TSMC, of course, manufacturer to many other chip designers as well, so they are certainly the beneficiary on the back of that demand.
RACHELLE AKUFFO: And I think it really clarifies that when we talk about chip makers here, the types of chips that we're talking about, because we're obviously we're talking about what was offset by the strength in these AI chips. But even then, there were supply constraints. So clearly, there's the need for the AI chips. But if you are not able to supply them because of constraints, that's obviously going to weigh on the stock here.
But then when you look at what we've been seeing with laptops, this is something that we've seen a steady decline when it comes to laptops and PCs. And I think investors are really going to be looking into what's next in those markets or are they just going to stagnate? People bought a lot of their gadgets, their laptops, their PCs during the pandemic, so we're continuing to see that leveling off. But obviously, AI the future here, but wanting to see a bit more momentum and waiting for some of those supply chain constraints to work their way out.