CUPERTINO, CALIFORNIA – SEPTEMBER 12: The brand-new iPhone 15 Pro is shown throughout an Apple occasion at the Steve Jobs Theater at Apple Park on September 12, 2023 in Cupertino, California.
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Shares of Apple providers fell in Asia on Wednesday after Barclays devalued the iPhone maker on issues that need for its items would stay weak in 2024.
Taiwan Semiconductor Manufacturing Company fell more than 2% in Wednesday early morning trading. TSMC is a leading manufacturer of the world’s most innovative processors for business such as Apple and Nvidia
Another significant Apple provider Hon Hai Technology Group, likewise called Foxconn, dropped 1.33%. Taiwan- based Foxconn is the world’s biggest agreement electronic devices maker and puts together Apple’s iPhones.
Technology and chip stocks consisting of Samsung Electronics and SK Hynix dropped more than 2%, while LG Electronics fell 1.78%, dragging South Korea’s Kospi lower 1.85%.
“We’re seeing that suppliers are still seeing robust growth on the iPhone 15. We’re in the middle of a supercycle,” stated Ray Wang of Silicon Valley- based Constellation Research on CNBC’s “Street Signs Asia.”
“There’s still 200 to 300 million iPhones that get replaced onto 5G, at least for the next 24 months, so I’m not sure exactly the downgrade on growth, but on valuation, I can understand maybe that’s where the hit will be,” Wang informed CNBC on Wednesday.
On Tuesday, Barclays devalued Apple’s stock to underweight and cut its rate target to $160 from $161, pointing out weak point in iPhone 15 sales, signifying likely lower need for iPhone 16 and other items. Apple shares closed 3.58% lower on Tuesday.
“We are still picking up weakness on iPhone volumes and mix, as well as a lack of bounce-back in Macs, iPads and wearables,” stated expert Tim Long on Tuesday, in a note to customers.
UBS in aJan 3 report stated that TSMC was “poised for a strong rebound in 2024” and preserved a buy ranking regardless of cutting its rate target to 750 Taiwan dollars from 760 Taiwan dollars.
“We think TSMC is in a sweet spot for growth over the next 18 months from its very high share on 4-nanometer and 3-nanometer and leverage to builds on cloud AI plus positioned to benefit from any rise in edge AI lifting large endpoint markets of PC, smartphone and IoT,” stated UBS.
— CNBC’s Shreyashi Sanyal added to this report.
