On July 16, TSMC declined 3.01% in regular trading, trading at $410.69/share, with turnover of $1.872 billion. The decline came despite the company posting record-breaking Q2 results.

TSMC reported Q2 net profit of NT$706.6 billion (approximately $22 billion), surging 77.4% year-over-year and significantly exceeding the consensus estimate of NT$623.7 billion. Revenue reached NT$1.27 trillion (~$402 billion), up 36% YoY, while gross margin hit a record 67.7%. The company raised full-year capital expenditure guidance to $600-640 billion from $520-560 billion and announced an additional $100 billion U.S. investment, bringing total U.S. commitments to $265 billion across 12 facilities.

However, Q3 gross margin guidance of 65%-67% represents a sequential decline from Q2 levels. With TSMC shares having already gained approximately 77% over the past year, investors executed a classic profit-taking move upon earnings release. Hedge fund net exposure to AI stocks reportedly fell to its lowest level this year, amplifying selling pressure across the semiconductor sector, where Marvell Technology fell 5.17%, Micron dropped 3.57%, and Intel declined 3.49%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)