TSMC earnings beat all expectations; Why is TSM stock sliding?

Taiwan Semiconductor Manufacturing Company (NYSE: TSM ) reported blockbuster third-quarter results , driven by robust demand for advanced artificial intelligence ( AI ) chips and high-performance computing (HPC). However, TSM stock fell sharply after the results. Revenue rose 16.2% sequentially and reached $46.72 billion, comfortably above analyst estimates of $45.41 billion. At the same time, earnings per share (EPS) came in at $ 4.60, beating expectations of $4.42 by about 4.1%. Despite the earnings beat, however, profitability showed signs of near-term trouble. Namely, gross margin declined 130 basis points from the previous quarter to 66.4%, while operating margin stood at 58.7%.

BeCrypto News shows a short excerpt and links to the publisher. The full report belongs to Finbold.