TSMC shares fall despite record quarterly profit on margin, outlook worries
-1.80% to $422.25 from $430.00
What moved TSM
- Net profit rose about 69% year-over-year to a record NT$763.1 billion, beating the LSEG SmartEstimate of roughly NT$746.3 billion, driven by AI chip demand from customers including Nvidia and Apple.
- Revenue came in near $46.7 billion, up over 41% in US dollar terms, while gross margin slipped about 1.3 points from the prior quarter due to early costs of ramping up 2-nanometer production.
- Shares still declined even after the beat, as the broader chip sector sold off on fears of further Fed rate hikes and investors weighed heavier spending plans and thinner margins ahead.
- Management raised its full-year 2026 revenue growth outlook to about 44%, up from a prior forecast of slightly above 40%, and guided to fourth-quarter revenue of $52.3 billion to $54.3 billion.
Sources: CNBC · Reuters · GuruFocus · TradingKey