On July 17, TSMC fell 3.12% in pre-market trading, trading at $393.8/share, with turnover of approximately $20.98 million. The decline follows the company's Q2 earnings release and significant upward revision of capital expenditure guidance.

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, with gross margin hitting a record 67.7%. Despite the blowout results, the company raised its full-year capex guidance to $60-64 billion from $52-56 billion previously, and announced an additional $100 billion investment in Arizona, bringing total U.S. commitments to $265 billion. Q3 gross margin guidance of 65%-67% also implies a sequential decline from Q2 levels due to 2nm ramp-up costs and overseas expansion dilution.

Analysts noted the stock had already rallied approximately 77% over the past year, with AI tailwinds largely priced in. The elevated capex sparked concerns over potential overcapacity and free cash flow compression, triggering a classic sell-the-news reaction. The broader semiconductor sector declined in tandem, with Micron down 4.57%, AMD down 4.54%, Intel down 4.46%, NVIDIA down 3.08%, and Broadcom down 2.34%.

(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.)