Stocks fell on concern sales growth at the nation's electronics companies will slow after Nvidia Corp said revenue will be unchanged in the fourth quarter, a period when holiday shopping typically boosts sales.
Taiwan Semiconductor Manufacturing Co (TSMC,
The TAIEX lost 146.36, or 3 percent, to close at 4,664.65, its largest drop since Oct. 7. The benchmark has risen more than a fifth from this year's low of 3,850.04 on Oct. 11.
"People are wondering if the rebound is over," said Louis Lee, who helps manage NT$2 billion (US$58.2 million) at President Investment Trust Corp (統一投信).
Dealers said as the index approached the psychological 5,000 point level, investors also became wary of Wall Street's weakness on Friday amid concerns over the US economic outlook and a possible war in the Middle East.
Rotational play among non-electronic shares proved insufficient to offset the losses in the electronic sector, they added.
"The fact that many non-electronic shares led by China plays [which have close business ties with China] continued to gain ground reflected a pervasive note of optimism on the market outlook" said Michael Hsu, assistant vice president of Fuh Hwa Capital Management (
Investors were advised to look for bargains if the market further weakened towards 4,600 points and below as the chances for the benchmark index to fall below 4,500 points in the near term were slim, Hsu said.
BUSINESS UPDATE: The iPhone assembler said operations outlook is expected to show quarter-on-quarter and year-on-year growth for the second quarter Hon Hai Precision Industry Co (鴻海精密) yesterday reported strong growth in sales last month, potentially raising expectations for iPhone sales while artificial intelligence (AI)-related business booms. The company, which assembles the majority of Apple Inc’s smartphones, reported a 19.03 percent rise in monthly sales to NT$510.9 billion (US$15.78 billion), from NT$429.22 billion in the same period last year. On a monthly basis, sales rose 14.16 percent, it said. The company in a statement said that last month’s revenue was a record-breaking April performance. Hon Hai, known also as Foxconn Technology Group (富士康科技集團), assembles most iPhones, but the company is diversifying its business to
Apple Inc has been developing a homegrown chip to run artificial intelligence (AI) tools in data centers, although it is unclear if the semiconductor would ever be deployed, the Wall Street Journal reported on Monday. The effort would build on Apple’s previous efforts to make in-house chips, which run in its iPhones, Macs and other devices, according to the Journal, which cited unidentified people familiar with the matter. The server project is code-named ACDC (Apple Chips in Data Center) within the company, aiming to utilize Apple’s expertise in chip design for the company’s server infrastructure, the newspaper said. While this initiative has been
GlobalWafers Co (環球晶圓), the world’s No. 3 silicon wafer supplier, yesterday said that revenue would rise moderately in the second half of this year, driven primarily by robust demand for advanced wafers used in high-bandwidth memory (HBM) chips, a key component of artificial intelligence (AI) technology. “The first quarter is the lowest point of this cycle. The second half will be better than the first for the whole semiconductor industry and for GlobalWafers,” chairwoman Doris Hsu (徐秀蘭) said during an online investors’ conference. “HBM would definitely be the key growth driver in the second half,” Hsu said. “That is our big hope
The consumer price index (CPI) last month eased to 1.95 percent, below the central bank’s 2 percent target, as food and entertainment cost increases decelerated, helped by stable egg prices, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday. The slowdown bucked predictions by policymakers and academics that inflationary pressures would build up following double-digit electricity rate hikes on April 1. “The latest CPI data came after the cost of eating out and rent grew moderately amid mixed international raw material prices,” DGBAS official Tsao Chih-hung (曹志弘) told a news conference in Taipei. The central bank in March raised interest rates by