Why Taiwan Semiconductor Stock Popped on Tuesday
Shares of Taiwan Semiconductor Manufacturing Company (NYSE: TSM) jumped more than 2% in morning trading Tuesday before settling down to an 0.8% gain as of 3 p.m. ET. This isn't a huge gain -- but it's enough to erase the stock's losses in response to a reported revenue decline yesterday.
Taiwan Semiconductor's news yesterday was either bad (as it was viewed at the time) or good (as investors seem to be rethinking it today), depending on how you look at it. On the one hand, fiscal Q2 2023 revenue totaled just $15.3 billion, a 10% year-over-year decline. On the other hand, the decline may not have been quite as bad as some analysts expected.
According to a Bloomberg report on the news, "the drop was not as bad as feared," and Yahoo! Finance estimates had analysts forecasting a decline of closer to 15%. Long story short, semiconductor sales are definitely down year over year, which sounds bad -- but the news could have been worse.
Source Fool.com
