TSM Stock Dips Premarket As 36% Q2 Sales Surge Fails To Offset Iran-Driven Market Jitters

• TSMC makes cutting-edge semiconductors for the likes of Nvidia, Advanced Micro Devices, and components for Apple.
• In April, TSMC raised its full-year sales outlook and said capital spending could reach the high end of its $56 billion 2026 forecast.
• Stocktwits sentiment for TSM climbed higher in the ‘extremely bullish’ zone on Monday.
   

Taiwan Semiconductor Manufacturing Co. shares fell 0.2% in premarket trading on Monday amid a broader market sell-off linked to the fresh U.S.-Iran escalation, taking the sheen off the company’s robust June and second-quarter sales update.

Revenue in the April-June period came in at NT$1.27 trillion ($39.62 billion), based on Reuters calculations, beating the LSEG/Reuters estimate of NT$1.264 trillion. June sales rose 37% to NT$401.26 billion. The company will release its full results and outlook on Thursday.

TSMC makes cutting-edge semiconductors for the likes of Nvidia, Advanced Micro Devices, and components for Apple. The biggest buyers of those chips – including cloud companies Alphabet, Amazon, and Microsoft – have set aside $725 billion for AI-related investments this year.

The latest performance shows steady demand for advanced chips, which power data centers and other systems that power AI applications, smartphones and automobiles. 

TSMC Recent Catalysts

In April, the Taiwanese giant raised its full-year sales guidance and said its capital spending should trend toward the upper end of an existing forecast range of up to $56 billion in 2026.

Nvidia CEO Jensen Huang announced in May that the U.S. chip designer would set up a headquarters in Taiwan and invest up to $150 billion annually in the region.

Still, TSMC CEO C.C. Wei had warned in June that his company won’t be able to meet demand from American customers for years, even as more manufacturing capacity comes online in the U.S. over the next few years.

TSMC Retail, Analyst View

TSMC stock has gained 43% year-to-date, pushing the chipmaker’s market capitalization above $2 trillion for the first time last month. 

On Stocktwits, retail sentiment for TSM climbed higher in the ‘extremely bullish’ zone. “$TSM shares are likely to receive upward price pressure because the reported revenue beat raises the probability that current analyst sales and earnings estimates are too low,” said a trader. 

Currently, 33 out of 34 analysts rate the stock ‘Buy’ or higher, and a lone analyst rates it ‘Hold,’ per Koyfin data. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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