Taiwan Semiconductor Manufacturer TSMC Faces Stock Slide Despite Strong Q1 Earnings

TSMC's Taipei-listed shares dropped over 6% following its first-quarter earnings report, where it maintained its capex and full-year revenue guidance and indicated a gradual recovery for the chip sector. The company forecasted a potential 30% rise in second-quarter sales due to demand for semiconductors used in AI applications, but left its capital spending plans unchanged and lowered its outlook for the global semiconductor industry and foundry sector. Analysts and investors expressed concerns over the company's profit expectations and the slower recovery in logic semiconductor demand for 2024, leading to a broader market decline of over 3.5%.