Trending tickers: TSMC, Novavax, Anglo American and IAG

Pedro Goncalves
NANJING, CHINA - JULY 19, 2023 - Visitors visit the booth of TSMC at the 2023 World Semiconductor Congress in Nanjing, Jiangsu province, China, July 19, 2023. On the afternoon of July 20, 2023, TSMC released the second quarter of 2023 financial results, due to the impact of the global economic downturn, which led to a decline in demand for automotive, mobile phone and server chips, TSMC net profit in the second quarter of 181.8 billion Taiwan dollars (about 5.85 billion US dollars), although higher than analysts' expectations, But it was down 23.3 per cent from T $237 billion in the same period in 2022. This is also the first time since the second quarter of 2019 that TSMC recorded a year-on-year decline in quarterly profit. TSMC also said it expected full-year sales to fall 10 per cent in US dollar terms. (Photo credit should read CFOTO/Future Publishing via Getty Images)
TSMC saw its April revenue jump nearly 60% percent on-year. (Future Publishing via Getty Images)

Taiwan Semiconductor Manufacturing Company’s April revenue jumped nearly 60% percent on-year, as the firm rides a wave of sustained demand for the advanced semiconductors used in artificial intelligence (AI) hardware.

The world’s largest contract chipmaker said consolidated revenues for April were approximately TWD236.02bn (£5.7bn/$7.2bn), an increase of 59.6% from April 2023. This compares with a 34.3% on-year jump in March 2024.

The company is Nvidia’s (NVDA) sole manufacturer for the most advanced training chips. TSMC also fabricates semiconductors for Apple (AAPL).

Read more: FTSE 100 LIVE: European stocks climb as UK economy escapes recession

Last month, TSMC announced its newest semiconductor process, advanced packaging, and other technologies for powering the next generation of AI innovations.

"We are entering an AI-empowered world, where artificial intelligence not only runs in data centres, but PCs, mobile devices, automobiles and even the internet of things," said CEO C.C. Wei.

Shares in Novavax were higher in pre-market trading as the pharmaceutical said it has signed a $1.2bn (£957m) deal with French drugmaker Sanofi (SAN.PA) to co-commercialise the company’s COVID vaccine starting next year.

Novavax will receive $500m in upfront payments as well as $700m in development, regulatory and launch milestones, according to a statement.

That total is roughly double Novavax’s current market cap of $627m.

Sanofi is also taking a minority equity stake of about 5% in Novavax. Novavax will benefit from a double-digit percentage of royalties from the sales of its Covid jab as well as any combined shot using its technology.

Novavax has had some turbulent times. Its market value boomed to more than $40bn at the height of the pandemic, propelled by investor excitement over its COVID shot. But it has since fallen by almost 99%.

Shares in the miner were higher amid reports that rival Rio Tinto (RIO.L) had considered an offer for British miner Anglo American, which is now BHP’s (BHP.L) £31bn takeover target.

Rio “management had not ruled out making a play for part or all of the mining group and continued to study the day-to-day situation", the Australian Financial Review reported.

Anglo has turned down BHP’s proposal, saying it was opportunistic and significantly undervalued the British company. Under the UK’s takeover rules, BHP has until May 22 to make a formal offer.

Read more: Bank of England holds interest rates but hints at summer cut

“Shares in Anglo American are up on a report that Rio Tinto also considered a bid following BHP’s rejected offer. M&A speculation is helping to keep Anglo shares supported at the moment,” Victoria Scholar, head of investment at Interactive Investor, said.

BHP and Rio have a close working relationship at Escondida and Resolution Copper. One option for Rio is to informally assist BHP’s bid for Anglo by acquiring the assets that BHP does not want, such as Anglo’s diamond business, AFR wrote.

Glencore is also studying options for a possible approach for Anglo, Reuters reported earlier in the month, a move that could spark a bidding war.

The owner of airlines British Airways and Aer Lingus has said its earnings have soared in recent months thanks to higher sales and lower fuel costs.

International Airlines Group (IAG) reported an operating profit for the first three months of the year of €68m (£58.5m), up from the €9m (£7.7m) reported this time last year.

Total revenues also jumped to €6.4bn (£5.5bn), up from €5.9bn (£5.1bn) last year, while fuel costs were about 5% lower than the previous year, due to lower average prices and more efficient aircraft deliveries.

IAG said the improved profits and sales had been driven by stronger demand across its airlines, which also include Iberia and Vueling.

It also highlighted that it was continuing to see a rebound in leisure travel.

Watch: Market strategist sees dollar dip lifting non-US stocks

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