Apr 18, 2024 - Economy
Charted: TSMC's shares take rare dive
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TSMC lowered its 2024 growth outlook for the overall chip market today, sending its U.S. listed shares down nearly 5%.
- The world's largest contract chip manufacturer said it expects the semiconductor market — excluding memory chips — to grow about 10% this year, versus the "more than 10%" it forecast three months ago.
Between the lines: Driving the lowered forecast was chip demand from the auto industry — which TSMC now sees as declining — and a muted bounceback from smartphones and personal computers, the company told analysts on a conference call today.
Yes, but: AI-related data center demand is "very, very strong," CEO C.C. Wei told analysts.
- The company continues to expect its overall revenue to grow by at least 20% this year.
Context: Even with today's drop, TSMC's shares are up 30% this year and more than 50% over the past 12 months.
