TSMC's $39 Billion Wipeout Will Only Get Worse, Analysts Say
- Chipmaker’s shares face pressure after worst quarter in decade
- Apple supplier to provide update on sales and profit Jan. 17
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The worst isn’t over yet for Taiwan Semiconductor Manufacturing Co. after the stock suffered its most painful quarter in a decade, analysts warn.
TSMC will struggle to plug the hole left by Apple Inc.’s declining smartphone orders in 2019, according to Sanford C. Bernstein’s Mark Li, who has told clients to prepare for the firm’s first annual profit drop in eight years. CGS-CIMB Securities’ Peter Chan, whose recommendation in October to sell the shares proved prescient, says TSMC’s still-high valuations will spook tech investors into owning cheaper alternatives in Asia and the U.S. instead. The firm lost $39 billion in market value since a peak in September.