Taiwan Semiconductor (NYSE: TSM) stock tumbled 5% in intraday trading Thursday as the chip maker unveiled first-quarter results above estimates but lowered overall semiconductor revenue forecasts.
Taiwan Semiconductor (TSM) recently announced financial results for the first quarter results, beating estimates on both top and bottom lines. However, the company has tempered its outlook for the chip market due to persistent consumer weakness, which overshadowed its robust Q1 performance.
C.C. Wei, CEO of Taiwan Semiconductor, told analysts on a conference call, per Bloomberg.
“Macroeconomic and geopolitical uncertainty persists, potentially weighing on consumer sentiment and end-market demand.”
In response to these challenges, TSMC revised its outlook for the global semiconductor industry excluding memory. The company now expects a growth rate of around 10%, down from a previous forecast of more than 10%. It also downgraded its growth forecast for the global foundry sector to a mid-to-high teens percentage gain, compared to an earlier estimate of around 20%.
TSMC, a key supplier to tech giants Apple and Nvidia, reported first-quarter revenue of 592.64 billion New Taiwan dollars ($18.87 billion), surpassing analysts’ estimates of TWD583.95 billion. The company also posted a net income of TWD225.49 billion, along with diluted earnings per share (EPS) of TWD8.70 ($1.38 per ADR), beating analysts’ expectations.
Taiwan Semiconductor (NYSE: TSM) Stock Price Action
At the time of publication, TSM stock trades at $132.27, marking a 4.86% decrease from the previous trading session. Traders have exchanged 39,306,148 (39.30 million) shares, exceeding the average daily trading volume of 16.16 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
