Is The Taiwan Earthquake Bad For Apple Inc. And QUALCOMM, Inc.?
- Apple Inc (NASDAQ: AAPL) shares have lost 22 percent since November 9, while shares of QUALCOMM, Inc. (NASDAQ: QCOM) have dipped 18 percent.
- JPMorgan’s Rod Hall maintained Overweight ratings on both companies.
- The Taiwan earthquake has a neutral impact on both Apple and Qualcomm, Hall stated.
A 6.4 magnitude earthquake rocked southern Taiwan on the morning of February 6. Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE: TSM) and United Microelectronics Corp (ADR) (NYSE: UMC) indicated that they would be able to recover most of their operations within two to three days. Taiwan Semiconductor further said that no more than 1 percent of its Q1 production would be affected.
The chipmakers said that work in progress on wafers at the fabs had been halted following the quake, which is likely to damage a significant portion of that production, according to EE Times.
Hall wrote, “We believe that Apple has been spinning down volume in this facility as their own demand has weakened in favor of Samsung – possibly due to higher pricing at TSMC. In our opinion this may have already reduced exposure to this earthquake though overall production seems barely impacted.”
Latest Ratings for AAPL
|Jan 2017||OTR Global||Downgrades||Negative|
|Jan 2017||Guggenheim||Initiates Coverage On||Buy|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.