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Taiwan Semi (TSM) lowers 2023 revenue guidance

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

Bill Lavoy

July 20, 2023 6:55 PM

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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.

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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Bill Lavoy

Managing Editor

Bill, who is also known as Rumpo, is a lifelong gamer and Toronto Maple Leafs fan. He made his mark early in his career through guide writing and a deep understanding of editorial SEO. He enjoys putting in the work to create a great content, be it a wild feature or grinding out an in-depth collectible guide. Tweet him @RumpoPlays if you have a question or comment about one of his articles.