TSMC held its earnings conference last week, and the next day, its stock price plummeted by NT$180. Many investors have sarcastically referred to the event as turning a 'financial briefing' into a 'funeral service.' In response, macroeconomist Wu Chia-lung posted on Facebook: 'The drop in TSMC's stock is an invitation to buy.' He emphasized that the earnings call actually contained many positive messages, and the sharp decline in share price might indicate that major investors are preparing to enter the market.

### Why Did TSMC's Stock Fall?

Financial expert Juan Mu-hua stated that the sharp decline in Taiwan's stock market on the 17th was clearly linked to TSMC's earnings call. However, he stressed that TSMC itself is innocent and should not be blamed for the market downturn, though the connection is undeniable.

Juan explained that TSMC's gross margin for Q2 reached 67.7%, slightly exceeding its own guidance upper limit, but falling short of market expectations of 69% or 69.5%. Additionally, foreign institutional investors had set higher targets, and the projected drop in gross margin for Q3—by 3 to 4 percentage points—was larger than anticipated, leading to market disappointment.

Following TSMC's earnings call, the Taiwan Weighted Index suffered a severe plunge. (Photo credit: Central News Agency)

### Has the AI Industry Revolution Ended?

Wu Chia-lung stated that TSMC remains firmly within a long-term upward trend and that temporary pullbacks, even sharp ones, are normal. He noted that such corrections are often justified with superficial reasons, but the fundamental outlook remains strong. He believes more positive news will emerge to offset the current decline.

Wu emphasized that a 3,000-point drop in the broader Taiwan market is not alarming and should not be interpreted as the end of the AI-driven tech revolution. Despite the positive signals from TSMC's earnings call, the stock's sharp fall suggests possible large-scale investor positioning—such as 'washing out weak hands' or 'liquidating margin positions.' If this is the case, once the consolidation is complete, the market could resume its upward trajectory.

### Related Exclusive Reports from Storm Media:

- Was the Taiwan Stock Market Crash TSMC's Fault? Juan Mu-hua Analyzes the Subtext: This Company Is Highly Ethical - Did TSMC's 'Earnings Call Turn Into a Funeral'? CFO Responds to Stock Plunge, Admits U.S. Factory Costs Are 'Five Times That of Taiwan' - Tragic Accident at TSMC's Hsinchu Science Park: Worker Crushed by Reversing Truck, Dies on the Spot with Severe Chest and Abdominal Injuries

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  • Source: PR Times
  • Category: News