TSMC Plunges Over 6%, Erases Nearly 4 Trillion TWD in Market Value After Earnings

According to market reports, TSMC (2330-TW, TSM-US) plunged over 6% today following its earnings call, dropping to 2,310 TWD and hitting a one-month low. The stock opened down nearly 4% in early trading and losses accelerated throughout the session. The company's market value fell from 64.05 trillion TWD to approximately 60.1 trillion TWD, erasing nearly 4 trillion TWD in a single trading day.

Despite releasing positive guidance yesterday, including raising 2026 U.S. dollar revenue growth guidance to over 40% and increasing full-year capital expenditure to $60-64 billion, investors focused on gross margin pressures. Q2 gross margin reached 67.7%, below some analysts' expectations of 70%, while concerns over 2-nanometer ramp dilution (estimated 3-4 percentage point margin impact in H2 2026) and rising overseas facility costs weighed on sentiment.