TSM - U.S. chip stocks dip after TSMC's outlook disappoints

2023-04-20 05:43:29 ET

U.S. chipmakers traded lower in Thursday's premarket hours after Taiwan Semiconductor ( NYSE: TSM ) issued a disappointing revenue forecast for the current quarter.

The Taiwanese chipmaker expects revenue of $15.2B to $16B for the second quarter ending June 30, 2023, down from $18.16B a year prior.

Q1 revenue fell 4.8% Y/Y to $16.72B, with chief executive C.C. Wei noting in an earnings call that the results were hurt by "softening end-market demand," while inventory levels were "much higher" than expected and that could extend into the third quarter.

The company kept its capital expenditure forecast for the year unchanged at $32B-$36B.

U.S. chipmakers that fell on the news include: Nvidia ( NVDA ) -1.3% , Advanced Micro Devices ( AMD ) -1.5% , Intel ( INTC ) -1% , Micron ( MU ) -1.04%

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