Taiwan’s Chipmaker TSMC said that its investment plan in the United States remains unchanged while responding to a question on the election of Republican Donald Trump as the next U.S. president.
TakeAway Points:
- Chipmaker TSMC responded to a question about Republican Donald Trump’s election as the next U.S. president by stating that its investment strategy in the US has not changed.
- Trump had accused Taiwan of stealing American semiconductor business.
- Pinterest’s shares fell 11% in extended trading on Thursday after its fourth-quarter revenue projection failed to please investors hoping for a lift from the forthcoming holiday shopping season, at a time when larger online ad sellers mainly thrived.
TSMC to invest in US
“Our investment plan in the U.S. remains unchanged,” the company said late on Thursday in an emailed statement, without elaborating.
TSMC, the world’s largest contract chipmaker and a major supplier to companies including Apple and Nvidia, is investing $65 billion in new factories in the U.S. state of Arizona.
Trump, while on the campaign trail, accused Taiwan of stealing American semiconductor business.
In April TSMC’s U.S. unit was awarded a $6.6 billion subsidy for advanced semiconductor production in Phoenix, Arizona, in a preliminary agreement with the Commerce Department.
Taiwan Semiconductor Manufacturing Co., GlobalFoundries, and at least one other chipmaker are poised to receive their final Chips and Science Act awards from the Biden administration, two people briefed on the matter said this week.
TSMC’s shares have so far batted off concern about Trump’s election and have performed strongly so far this year given soaring demand for artificial intelligence.
On Thursday, the company’s American Depositary Receipts closed up 4.1% after Nvidia’s shares rallied to a record high, making the chipmaker the first company in history to surpass a stock market value of $3.6 trillion.
Pinterest’s prediction disappoints investors hoping for a spike in holiday-related advertising
Pinterest’s fourth-quarter revenue forecast failed to impress investors looking for a boost from the upcoming holiday shopping season, at a time when bigger online ad sellers largely outperformed, sending its shares down 11% in extended trading on Thursday.
The San Francisco, California-based company also announced a new stock buyback program of up to $2 billion and cancelled the September 2023 program under which $500 million were left for repurchase.
Pinterest’s results follow quarterly reports by digital ad bellwethers—including Google-parent Alphabet, Meta Platforms, Reddit, and Snap—which posted upbeat third quarter revenue, helped by robust ad spending.
The image-sharing platform faces stiff competition from the likes of Meta-owned Facebook and Instagram, which have become the go-to platforms for advertisers because of their larger user base.
Pinterest Performance+ suite
Pinterest released Performance+ suite in October, helping advertisers better target users with new AI tools and automation features on the platform.
“Performance+ is still in the early rollout phase, with many advertisers limiting budget shifts and adoption of new features during holiday peak period,” CFO Julia Donnelly said on a post-earnings call.
The company is also seeing “softness” among food and beverage advertisers, Donnelly said.
Pinterest forecast fourth-quarter revenue to be between $1.13 billion and $1.15 billion, the midpoint of which was in line with analysts’ average estimate of $1.14 billion, according to data compiled by LSEG.
It forecast quarterly adjusted operating expenses between $495 million and $510 million, growing 11% to 14% from a year earlier, driven by investments in AI talent and product initiatives.
“Pinterest’s Q3 continues a streak of smaller social media competitors orbiting Meta, gaining ground with advertisers,” Emarketer analyst Daniel Konstantinovic said.
The company’s “steep jump” in expenses shows that its smaller size does not exclude it from scrutiny around costs, Konstantinovic added.
Revenue for the third quarter grew 18% to $898.4 million, compared with estimates of $896.4 million.
Adjusted profit per share for the quarter came in at 40 cents, compared with estimates of 34 cents.
Global monthly active users on the platform rose 11% to 537 million in the July-to-September period, compared with estimates of 531.5 million.
