Apple iPhone chip supplier Taiwan Semiconductor Manufacturing saw healthy sales growth last month because of a strong demand for smartphone processors. Taiwan Semiconductor stock spiked to a record high on the information Thursday.
Taiwan Semi reported revenue of $3.54 billion in November. Sales surged1.7% from the earlier month and popped 9.7% yearly in local currency.
“We think this is largely due to smartphones along with a recovery in data center chips,” RBC Capital Markets analyst Mitch Steves stated in a report to clients Wednesday.
He added, “Notably, we think the first quarter 2020 will seemingly see high demand for 7-nanometer chips due to ramps at AMD, while smartphones might continue to be robust (Chinese New Year), where Huawei and MediaTek would likely drive demand.”
On the stock market today, Taiwan Semiconductor stock leaped 4.9% to close at an all-time high of 58.61.
On September 17, Taiwan Semiconductor stock broke out of a cup-with-handle base at a buy point of 44.98, based on IBD MarketSmith.
Rosenblatt Securities analyst Jun Zhang sees Taiwan Semiconductor as one of the vital beneficiaries from the slope of 5G wireless. Wireless chip manufacturer Qualcomm is one other semiconductor agency poised to benefit from the adoption of 5G handsets, he said in a note to clients Thursday.
Huawei, Oppo, Vivo, and Xiaomi are top Chinese smartphone manufacturers. Samsung, the world’s leading smartphone vendor, is based in South Korea.
Bank of America and Cowen earlier cited chip manufacturers Qorvo Qualcomm and Skyworks Solutions, as 5G beneficiaries.