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🇹🇼 Taiwan /Economy & Trade

TSMC Stock Tumbles, Erasing Over NT$2 Trillion in Market Value

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Taiwan Semiconductor Manufacturing Company (TSMC) stock price plummeted on July 28, 2026, falling 3.4% and erasing over NT$2 trillion (US$62 billion) in market value.
  • The decline followed a significant drop in the US Philadelphia Semiconductor Index and Nvidia's stock, impacting the broader Asian markets.
  • Despite the dip, some analysts view it as a buying opportunity, with many foreign institutions maintaining high target prices for TSMC.

Taiwan Semiconductor Manufacturing Company (TSMC) experienced a sharp stock price decline on July 28, 2026, a day marked by significant drops across Asian markets. The company's shares fell 3.4% in early trading, reaching a low of NT$2,270, which wiped out more than NT$2 trillion (approximately US$62 billion) in market capitalization. This downturn mirrored a broader market slump, with the US Philadelphia Semiconductor Index down over 2% and Nvidia shares also experiencing a significant fall.

The broader impact was felt across Asian stock exchanges, with South Korea's KOSPI experiencing a circuit breaker halt due to an over 8% plunge, and Japan's Nikkei 225 index dropping over 2,800 points. SK Hynix's American depositary receipts also fell below their issuance price, contributing to a US$470 billion loss in market value from its peak.

TSMC's forecast for the third quarter's median gross margin is about 66%, mainly reflecting the dilution effect brought by the initial mass production of the 2-nanometer process.

— US-based foreign institutionAn analysis of TSMC's financial outlook following its earnings call.

Analysis of trading data showed foreign investors sold a net 2,662 TSMC shares on July 27, marking the fourth consecutive day of divestment, totaling over 20,000 shares. Conversely, domestic investment trusts and proprietary traders were net buyers, acquiring 567 and 1,410 shares, respectively.

Following TSMC's earnings call, nine foreign investment banks raised their target prices, with NT$3,000 becoming a market consensus. One US-based foreign institution noted TSMC's forecast for a median gross margin of approximately 66% in the third quarter, attributing the dilution effect to the initial production of its 2-nanometer process. The institution suggested that market expectations of a 70% gross margin were overly optimistic and that any pullback due to lower-than-expected margins could present a favorable opportunity for investors to accumulate shares.

If the stock price falls due to gross margin not meeting expectations, it is an opportunity to buy at a low price.

— US-based foreign institutionAn analysis of TSMC's financial outlook following its earnings call.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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