On October 15, Taiwan Semiconductor Manufacturing fell 4.39% in Regular Trading, trading at $411.825 per share, with turnover of $1.742 billion.
The move followed a quarterly report that beat market expectations on revenue and profit, but investors focused on softer profitability trends, including third-quarter gross margin of 66.4% versus 67.7% in the prior quarter, fourth-quarter gross margin guidance of 65% to 67%, and management's statement that it will maintain a prudent operating planning approach into 2027.
For the third quarter, the company reported net profit of NT$763.06 billion, up 68.7% year over year, and revenue of NT$1.49 trillion, up 50.9%, both above expectations. It also guided fourth-quarter revenue to $52.3 billion to $54.3 billion and raised full-year U.S. dollar revenue growth outlook to about 44%. However, management indicated that early 2nm production will dilute margins, which appears to have tempered enthusiasm despite continued strong AI-related demand and aggressive capacity expansion plans.
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