“A major Asian chip manufacturer’s weaker than expected guidance for the June quarter is driving technology stocks lower,” Tae Kim reports for CNBC. “”
“Taiwan Semiconductor Manufacturing (TSMC) on Thursday said its revenue forecast range for its second quarter is $7.8 billion to $7.9 billion versus the Wall Street estimate of $8.8 billion,” Kim reports. TSMC’s CFO Lora Ho blamed “continued weak demand from our mobile sector.”
“TSMC is the largest semiconductor foundry company in the world and manufactures chips for leading technology firms such as Apple and Nvidia,” Kim reports. “Apple shares are down 1.4 percent in Thursday’s premarket session, while Nvidia is down 1.4 percent. Taiwan Semiconductor Manufacturing shares fell 4.8 percent.”
Read more in the full article here.
MacDailyNews Take: The stock market is a knee-jerker’s paradise.
Even if a particular data point were factual it would be impossible to accurately interpret the data point as to what it meant for our overall business… There is just an inordinate[ly] long list of things that would make any single data point not a great proxy for what’s going on. Apple CEO Tim Cook, January 23, 2013
SEE ALSO:
Analyst: Apple’s iPhone X production has met expectations – March 20, 2018
“The stock market is a knee-jerker’s paradise.”
And a rumor monger’s utopia!
Live by it, die by it.
Microsoft to introduce a competitor to Apple’s badly performing Home Pod
😜🤪
What does MS have to do with the story…? Why not Kleenex?
Never mind that Apple will start making their own custom chips…..Apple is now back to DOOOOOMED status…..selllll everything……..LOL!!!
Relax! Apple has achieved nirvana… custom customers!
Fortunately, not all here are afflicted.
Severely doubt fabrication of those custom chips will be in-house. Apple HATES owning manufacturing and rather do the design and then outsource the actual production. TSMC is supposed to be Apple’s go to for moving away from Samsung. Not a surprise if it really is a factor for moving AAPL.
I find these stories annoying as they drive Apple stock down but hopefully Apple can take advantage of the drop in stock value with share buybacks. At least Apple’s share count is steadily dropping, so I at least consider that a positive thing for shareholders with the possibility of increased dividends.
How the heck does Microsoft manage all those dividends for 7.7B shares? That would seem to be a huge drain on quarterly cash flow.
Share buybacks are nice but serve mostly to help reduce volatility in stock price.
One guess for the dividends is MSFT is not bent on keeping a large cash hoard.
It’s funny. NVDA stock over the past 52 weeks has gone from $100 a share to around $254 a share and Apple certainly wasn’t part of that tremendous rally but yet Apple somehow gets tied in with NVDA’s stock dip. I guess it only works one way for Apple.
The article doesn’t claim any link between AAPL and NVDA (clients) stock prices other than their mutual association with TSMC (provider). Not a surprise NVDA stock performance doesn’t affect AAPL.
Apple shares are being pounded hard in heavy trading. Not even 12 noon and shares have fallen $4.40. What a bloodbath.
As I have said many, MANY times here on MDN . . . unless you bought AAPL back–way back–in its trading history and can suffer the slings and arrows of today’s outrageously volatile market, stay away from this equity. Far away. My family and I bought our AAPL in the late 80s and have held on to each and every share for over 30 years now (and have profited enormously). However, the current crop of analysts and gurus distrust, perhaps even hate, AAPL and will turn on the position without a second’s hesitation. Today’s selloff is full witness to that fact. Until (in their minds) Apple becomes something other than a mobile phone company, there is no chance of a serious, safe, and fair rise in its value. Increase the dividend perhaps? Nope. Buy back more shares? Nope. To their thinking Apple is a one-trick pony with little chance of new, sustained, solid growth. Run, young people, from this stock–but continue to love the products Apple brings to market, as do we.