Wednesday, January 4, 2023 9:46 am1 Comment

• News

Wall Street banks such as Goldman Sachs are turning bearish on Taiwan Semiconductor Manufacturing Co. (TSMC), cautioning that the world’s biggest chipmaker will issue conservative guidance for its revenue outlook due to weak demand.

Jeanny Yu for Bloomberg News:

The primary chipmaker for Apple Inc. is scheduled to report earnings for the last quarter on Jan. 12, when it is also expected to share the guidance for this year’s outlook. Both Goldman Sachs Group Inc. and UBS Group AG expect TSMC’s sales to be flat in 2023, with UBS cutting its price target on the company by 7.4%.

“TSMC is not immune to the industry inventory digestion and end-demand correction into 2023,” UBS analysts led by Sunny Lin wrote in a note on Tuesday. “We lower our 2023 revenue estimate from 3% growth to flat YoY in USD, considering the weaker consumer demand and decelerating high-performance computing growth.”

While a healthy recovery is expected in second half of the year, “the pace of demand rebound could be slower than the company expects as there is still lack of clear signs of end demand recovery,” Goldman Sachs analysts Bruce Lu and Evelyn Yu said in a note.

MacDailyNews Take: Some wonderful stock deals are going to be available in the first half of this year!

If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes. — Warren Buffett

Be fearful when others are greedy and greedy when others are fearful. — Warren Buffett

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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]