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Wall Street has a new message for TSMC, straight out of The Godfather: Take the profits, leave the capex.
Despite announcing record revenue of $40 billion (beating expectations), net income of $22 billion (a 77% year-over-year increase) and beefed-up guidance for the rest of the year, US-listed shares of the premier semiconductor manufacturer still dropped more than 2% on Thursday following its second-quarter earnings call. Why? Because TSMC also pledged to invest an additional $100 billion (yes, billion) into its Arizona-based chip fab, igniting enough concern about AI over-investment on Wall Street to burn the rest of the sector with it.
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READ ALSO: Lackluster Retail Sales Mask a (Short-Lived) Silver Lining and Eli Lilly to Pay up to $3.8B for AtaiBeckley in Big Pharma's Latest Psychedelic Foray
Wall Street has a new message for TSMC, straight out of The Godfather: Take the profits, leave the capex.
Despite announcing record revenue of $40 billion (beating expectations), net income of $22 billion (a 77% year-over-year increase) and beefed-up guidance for the rest of the year, US-listed shares of the premier semiconductor manufacturer still dropped more than 2% on Thursday following its second-quarter earnings call. Why? Because TSMC also pledged to invest an additional $100 billion (yes, billion) into its Arizona-based chip fab, igniting enough concern about AI over-investment on Wall Street to burn the rest of the sector with it.
Sign up for The Daily Upside at no cost for premium ******* ysis on all your favorite stocks.
READ ALSO: Lackluster Retail Sales Mask a (Short-Lived) Silver Lining and Eli Lilly to Pay up to $3.8B for AtaiBeckley in Big Pharma's Latest Psychedelic Foray
2 months ago
