Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM), one of the most tracked Asia-based chip manufacturers, offered investors a poor guidance outlook that had a ripple effect across the technology sector.
What Happened
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Taiwan Semiconductor manufacturers chips for companies like Apple Inc. (NASDAQ:AAPL) and NVIDIA Corporation (NASDAQ:NVDA) and said it's facing "weak demand" from mobile customers, CNBC reported. The company guided its revenue for the second quarter to a range of $7.8 to $7.9 billion, which is notably short of Wall Street's estimate of $8.8 billion.
The Taiwan-based company followed up in a conference call that its poor guidance is attributed to "softening" demand in the high-end smartphone market. The company also feels it necessary to take a more conservative stance in its outlook for sales related to the cryptocurrency mining industry.
Why It's Important
Taiwan Semiconductor's poor outlook is notable enough to impact many mega-cap names in the telecom and technology sector. Here is a summary of some of the stocks seeing a notable impact ahead of Thursday's market open.
- Apple down 1.4 percent.
- Nvidia down 2 percent.
- Taiwan Semiconductor is down 4.9 percent.
- Skyworks Solutions Inc (NASDAQ:SWKS) down 2.8 percent.
- NXP Semiconductors NV (NASDAQ:NXPI) down 2.6 percent.
- QUALCOMM, Inc. (NASDAQ:QCOM) down 2.4 percent.
- Micron Technology, Inc. (NASDAQ:MU) down 1.8 percent.
- Advanced Micro Devices, Inc. (NASDAQ:AMD) down 1.7 percent.
- Applied Materials, Inc. (NASDAQ:AMAT) down 1.7 percent.
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