Taiwan Semi (TSM) lowers 2023 revenue guidance

Taiwan Semi lowered guidance for Q3 2023, and the entire semiconductor sector suffered as a result.


Taiwan Semi (TSM) reported its Q2 2023 earnings recently, and while the company beat on earnings per share (EPS) and revenue, the world’s largest chipmaker saw drops year-over-year. Taiwan Semi went on to lower guidance for its upcoming Q3 2023, and the stock fell as a result.

An image showing a day-by-day view of TSM's stock amid lower Q3 2023 guidance

According to the Taiwan Semi investor relations website, the new Q3 2023 guidance is as follows:

  • Net revenue: 16.7 to 17.5 billion USD
  • Exchange rate (USD/NTD): 30.8
  • Gross margin: 51.5% to 53.5%
  • Operating margin: 38% to 40%

The company had this to say about its updated outlook in its Q2 2023 earnings report:

"This is the third cut to its revenue outlook that TSMC has made this cycle," Needham analyst Charles Shi said. Shi went on to say that "TSMC's second-quarter earnings call may go down as one of the more pessimistic calls in recent history.”

Yesterday, TSM closed trading at $103.06 per share, followed by a closing price of $98.01 per share today. That’s a 4.9 percent drop, and it brought the entire semiconductor sector down with it, as AMD and Intel (INTC) also saw drops.

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