Taiwan Semiconductor Manufacturing on Thursday beat estimates for sales in the month of March and for the full first quarter. But TSM stock fell after the report.
The world's leading chip foundry, better known as TSMC, reported $8.67 billion in sales for March, topping views for $8.46 billion.
For the full quarter, it posted $25.52 billion in sales. Analysts polled by FactSet had expected $25.31 billion in first-quarter revenue. On a year-over-year basis, TSMC sales rose 39% in Q1.
The contract chipmaker will provide details on the types of chips that drove Q1 sales when it reports first-quarter earnings next Thursday.
Analysts predict TSMC will earn $2.06 per U.S. share in Q1, up 54% year over year.
TSMC produces chips for AMD, Apple, Broadcom, Qualcomm, Nvidia and more.
On the stock market today, TSM stock slid 4.8% to close at 151.13.
On Wednesday, TSM stock snapped a four-day losing-streak spurred by the Trump tariffs.
TSM Stock Ranks Second In Group
Wedbush Securities analyst Matt Bryson reiterated his outperform, or buy, rating on TSM stock after the sales report.
"While TSMC may have benefitted somewhat from customer pull-ins (ahead of tariffs), we also see strong results as continuing to support solid demand for advanced semiconductors, driven largely by AI requirements," Bryson said in a client note.
However, U.S. trade policies, including tariffs and their impact on consumption, continue to be a worry for TSM stock investors, he said.
TSM stock ranks second out of 31 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. Taiwan Semiconductor has a middling IBD Composite Rating of 62 out of 99.
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