Trending Sector
Global Semiconductors
TSMC’s outlook sparks hope for global semiconductor companies
Semiconductor shipments
Source: SIA, DBS Bank
Price return – Global semiconductor stocks under DBS coverage
| Stocks | Sector | YTD Return | 2023 Return |
| NVDA | Consumer | 20.1% | 238.9% |
| AMD | Consumer | 18.2% | 127.6% |
| MRVL | Enterprise | 17.9% | 62.8% |
| TSM | Foundries | 9.8% | 39.6% |
| AVGO | Enterprise | 8.5% | 99.6% |
| LRCX | Equipment | 5.5% | 86.4% |
| KLAC | Equipment | 5.5% | 54.2% |
| QCOM | Consumer | 5.1% | 31.6% |
| SOX | Index | 4.8% | 64.9% |
| AMAT | Equipment | 3.6% | 66.4% |
| MU | Memory | 2.5% | 70.7% |
| TXN | Analog | 1.9% | 3.2% |
| S&P500 | Index | 1.5% | 24.2% |
| ASML | Equipment | 0.7% | 35.3% |
| TER | Equipment | 0.2% | 24.2% |
| ADI | Analog | -1.9% | 21.1% |
| GFS | Foundries | -2.4% | 12.5% |
| INTC | Consumer | -4.2% | 90.1% |
Source: DBS Bank, Refinitiv. Closing prices as of 19-Jan-24
- We highlight 2 positive takeaways from the better-than-expected TSMC results that benefits UMS Holdings in Singapore as well as numerous technology stocks in overseas markets
- Takeaway #1) The AI-run that started in 2023 still has legs, as TSMC expects 20% revenue growth on sustained demand for high-end chips used in AI
- Apart from the AI-datacenter plays (NVDA, AMD, MRVL, AVGO), keep an eye on AI use cases in various end-user sectors (e.g., NVDA’s AI in personal computers, QCOM’s AI in smartphones)
- TMSC’s robust 20% revenue growth lends support to the memory-led industry recovery of 16.8% in 2024 and 15.5% in 2025
- AI related demand is also likely to flow through to Singapore based semiconductor companies such as UMS Holdings via key customer AMAT
- Takeaway #2) Scope for equipment makers to surprise positively due to TSMC’s robust CAPEX plan of US$28-$32bn for 2024 (vs. US$30.4bn in 2023, record-high US$36.3bn in 2022)
- The fit-out and ramp of TSMC’s upcoming facilities would require key advanced process equipment, benefitting the likes of ASML, AMAT, KLA, LRCX
Singapore Residential
Sales to catalyse interest in developers
- Robust pipeline of residential launches could turn attention back to developers
- Eyes on Lumina Grand, EC project near upcoming Tengah district, and a strong take-up rate could galvanise City Developments’ share price
- ECs to continue enjoying brisk sales with its pricing attractiveness to upgraders/new homeowners
- Pick City Developments for its robust pipeline of EC and suburban launches
Legend
| (+) | (-) | |
| Earnings | Positive earnings revision | Negative earnings revision |
| Recommendation | Upgrade | Downgrade |
| TP | Increase | Decrease |