TSMC Stocks Fall 7.46% Despite a $53.3 Billion Revenue Midpoint

What happened

TSMC’s U.S.-listed depositary receipt fell 7.46% to $366.23 at 10:20 a.m. ET during November 5 trading. The company reported third-quarter revenue of $46.72 billion and a 66.4% gross margin, and forecast December-quarter revenue of $52.3 billion to $54.3 billion, with a $53.3 billion midpoint.

Confirmed

Global impact / market context

The forecast midpoint points to about 14.1% sequential revenue growth, but the share decline puts pressure on confidence that growth can continue. If revenue misses the range or gross profit per sale weakens, investors may reassess expected earnings and the value they assign to TSMC.

Analyst inference

The article describes a contrast between strong reported results and a falling share price: advanced chips made up much of wafer revenue, while a third-party snapshot showed strong profitability and growth scores but comparatively weaker valuation. That may leave expectations and the price paid under scrutiny.

Analyst inference

What to watch

1. Check whether December-quarter revenue lands within the $52.3 billion to $54.3 billion forecast range; a shortfall could weaken the case for the expected growth. Analyst inference
2. Track gross margin, the share of revenue remaining after direct production costs, against the reported 66.4%; a decline could reduce profit even if sales rise. Analyst inference
3. The article says technologies at 7 nanometers and below contributed 79% of wafer revenue, including 8% from 2-nanometer production; watch for reported changes in those shares. Confirmed

Evidence

• gurufocus.com