Taiwan Semiconductor Manufacturing, the world's largest contract chip producer, on Thursday reported sales for the month of June that topped expectations. But TSM stock wavered on the news.
The chip foundry, better known as TSMC, generated the equivalent of $8.9 billion in revenue in June. Estimates called for June sales of $8.51 billion. On a year-over-year basis, sales increased 26.9% in local currency.
For the full second quarter, TSMC's revenue was $30.17 billion, up 46% from the same quarter last year. Analysts polled by FactSet had expected second-quarter revenue of $29.78 billion.
The chip foundry is scheduled to report full second-quarter results on July 17.
In morning trades on the stock market today, TSM stock initially rose but then reversed. It ended the regular session down 0.9% to 229.76. TSM stock hit a record high of 237.58 on July 3.
TSMC makes leading-edge chips for a host of companies, including AMD, Apple, Broadcom and Nvidia.
TSMC is a key supplier of chips for data centers running artificial intelligence applications.
On May 22, TSM stock broke out of a cup-with-handle base at a buy point of 196.22, according to IBD MarketSurge charts.
TSM stock is on two IBD stock lists: Global Leaders and Tech Leaders.
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