TSMC Stock Slides Despite Crushing Q2 Estimates With Fifth Straight Record Profit

TSMC reported Q2 net income of NT$706.56 billion ($22 billion), up 77.4% year-over-year and well above the NT$632.64 billion consensus estimate, marking its fifth consecutive quarter of record profit. Revenue reached NT$1.27 trillion ($39.45 billion), up 36% from last year's NT$933.79 billion, with advanced 7nm-and-below technologies accounting for 77% of total wafer revenue driven by AI demand from Nvidia, Apple, and Broadcom.

Why it matters: Despite the results, TSMC shares fell 3.76% to $403.71 in premarket trading; the company forecast Q3 revenue of $44.6-$45.8 billion with gross margins of 65-67%.