Taiwan Semiconductor Manufacturing (TSM.US) stock fell more than 5% despite the fact that one of the world's biggest chip makers posted strong quarterly figures. Company earned 93 cents per U.S. share in the June quarter, up 18% year over year and in line with analyst estimates. The company's sales increased 28% to $13.29 billion in the second quarter. For the current quarter, the company expects revenue of $14.6 billion to $14.9 billion. The midpoint of $14.75 billion beat market expectations of $14.57 billion. Company’s sales in the year-earlier period were $12.4 billion.
However TSM short term outlook on the semiconductor market weighed on the sentiment. TSM believes the current supply squeeze will end in the near future. CEO CC Wei expects chip deliveries to carmakers in particular to pick up sharply in the current quarter and over the rest of the year. Company also considering opening a new fabrication plant in Japan.
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Open account Try demo Download mobile app Download mobile appSome investors consider this as spelling an end to the windfall that chipmakers have enjoyed in the first six months of 2021. As a result shares of other chipmakers also suffered losses: NXP Semiconductors (NXPI.US) stock lost nearly 4.0%, Nvidia (NVDA.US) shares fell 2.6% and Intel (INTC.US) dropped 1.15%
Taiwan Semiconductor Manufacturing (TSM.US) stock launched today’s session with a massive bearish price gap and is currently approaching the major support zone around $117.00 which is marked with the lower limit of the 1:1 structure, upward trendline and 200 SMA (red line). Should break lower occur, then downward move may accelerate towards next support at $107.77. Source: xStation5
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