TSMC reported a record-breaking quarter, but market expectations have become “exceptionally high,” according to a fund manager.
The chipmaker’s stock fell in New York trading as investors appeared to sell the good news and lock in profits.
Revenue surged past analyst forecasts, driven by strong demand for advanced chips used in artificial intelligence.
The company’s profit margins remained robust, reflecting its dominant position in the semiconductor supply chain.
Despite the impressive results, concerns about future growth weighed on sentiment.
Analysts noted that elevated expectations leave little room for error in upcoming quarters.
TSMC faces ongoing challenges, including geopolitical tensions and rising production costs.
The stock decline suggested that even strong quarterly performance may not satisfy investors in the current environment.
