Is The Taiwan Earthquake Bad For Apple And Qualcomm?

Loading...
Loading...
  • Apple Inc AAPL shares have lost 22 percent since November 9, while shares of QUALCOMM, Inc. 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) TSM and United Microelectronics Corp (ADR) 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.”

date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorLong IdeasReiterationAnalyst RatingsTrading IdeasJPMorganRod Hall
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...