On July 17, TSMC declined 4.46% in regular trading, trading at $389.86/share, with turnover of $1.625 billion. The sell-off continued for a second consecutive session following the company's Q2 earnings release.

TSMC reported Q2 net profit of NT$706.6 billion, surging 77.4% year-over-year and far exceeding the market consensus of NT$623.7 billion. Revenue reached NT$1.27 trillion, up 36% YoY, while gross margin hit a record 67.7%. However, the company raised its full-year capital expenditure guidance sharply from $52-56 billion to $60-64 billion, citing accelerated capacity buildout and equipment price inflation. Additionally, Q3 gross margin guidance of 65%-67% represents a sequential decline from Q2, driven by 2nm ramp dilution and overseas fab expansion costs.

Despite multiple Wall Street firms raising price targets — including Goldman Sachs to NT$3,100, TD Cowen to $440, and D.A. Davidson to $500 — the market exhibited a classic buy-the-expectation, sell-the-fact pattern. The stock had gained approximately 77% over the past year, and investors appear to be rotating out of chip names amid concerns over elevated valuations and AI infrastructure overcapacity risks. The broader semiconductor sector fell in tandem, with AMD down 7.37%, Intel down 6.9%, and NVIDIA down 4.08%.

(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.)