๐จTSMC made a fortune, but its stock price still plunged 4%? What exactly is Wall Street worried about?๐คฏ
The earnings beat expectations, yet the stock still fell.๐ณ
TSMCโs latest announcement of second-quarter results showed both revenue and net profit exceeding market expectations, with net profit up a whopping 77%โits performance can be described as quite outstanding.๐
But what surprised the market was that TSMCโs stock briefly dropped by more than 4% before the bell.
Why did this happen?๐ค
One reason is that TSMC announced it will add another $100 billion in investment in the United States, bringing its total local investment to $265 billion. While this signals continued expansion, the market has also started to worry that future capital expenditures will surge and may affect profitability in the short term.๐ฐ
๐ What the market is focused on:
๐น Will large-scale U.S. investment squeeze future profits?
๐น How long can AI chip demand remain strong?
๐น Can TSMC continue to lead the semiconductor market?
๐ On one side is the strongest profitability in history, and on the other is the market choosing to sell. What Wall Street may truly be concerned about might not be nowโbut the future.
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