Taiwan Semiconductor (TSMC) sees market value drop below 20 trillion New Taiwan Dollars amid changes in the government's policy statements.

TSMC announced an impressive earnings per share (EPS) of 8.7 NT dollars at yesterday's investor conference, but revised down the full-year semiconductor industry outlook. Coupled with the escalating tension in the Middle East this morning, TSMC's stock price plummeted to 746 NT dollars at one point, a decrease of over 6%, causing its market value to dip below 20 trillion NT dollars.

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TSMC Reports Strong First Quarter Profit of NT$225.4 Billion

Taiwan Semiconductor Manufacturing Company (TSMC) reported a consolidated revenue of NT$592.4 billion for the first quarter of this year, with a net profit after tax of NT$225.9 billion. Earnings per share (EPS) were 8.7, surpassing market expectations. The first quarter gross profit margin was 53.1%, operating margin was 42%, and net profit margin after tax was 38%.

TSMC Lowers Annual Semiconductor Outlook

TSMC expects its second-quarter revenue in US dollars to range between NT$196 billion and NT$204 billion, with a year-on-year increase of approximately 27.5% and a quarter-on-quarter increase of about 6%. The gross margin for the second quarter is expected to be between 51% and 53%, with an operating margin of 40-42%.

However, CEO C.C. Wei revised the annual outlook for the semiconductor industry during the earnings call. Instead of the previously anticipated growth of "over 10%" for the year, it is now revised to a 10% annual growth excluding memory; while the global semiconductor foundry industry value is estimated to grow between 14% and 19%, lower than the initial forecast of 20%.

Regarding the outlook for various application markets, Wei mentioned strong demand for high-performance computing (HPC) and AI, steady growth in smartphones, slow recovery in PCs, adjustments in IoT and consumer applications, and destocking in the automotive market. Particularly in the automotive sector, he revised the optimistic view from the previous quarter, indicating a potential downturn.

Despite the downward revision in some sectors, TSMC can maintain its growth target due to the positive outlook for AI.

TSMC's Market Value Exceeds NT$20 Trillion

After the earnings call yesterday afternoon, investors generally viewed TSMC's presentation as lacking any significant highlights, as the stock price had already reflected the impressive revenue figures. Concerns were raised about the downward revision in the semiconductor industry forecast, leading to a decline in the semiconductor sector across the board yesterday. A meme circulated online, mocking TSMC for adjusting others' outlook while downgrading its own semiconductor industry forecast.

TSMC closed at a historic high again, with foreign institutions raising their target prices due to AI support.

TSMC's ADR fell by 4.86% last night, closing at $132.27. Today, Taiwan's stock market opened with news of renewed tensions in the Middle East, causing TSMC's stock price to plummet to NT$746 at one point, a drop of over 6%, pushing its market value above NT$20 trillion.