Why Nvidia Chip Maker TSMC Is Falling Despite Posting Q1 Earnings Beat [Video]

American depositary receipts (ADRs) of Taiwan Semiconductor Manufacturing Company (TSM) fell in intraday trading Thursday, after the chip maker’s comments in an earnings call lowering projections for everything apart from artificial intelligence (AI)-related semiconductors offset higher-than-forecast results.

TSMC reported first-quarter revenue of 592.64 billion New Taiwan dollars ($18.87 billion), above estimates compiled by Visible Alpha of TWD583.95. The company reported TWD225.49 billion in net income, along with a diluted earnings per share (EPS) of TWD8.70 ($1.38 per ADR), compared to the TWD214.07 billion and TWD8.25 per share analysts expected.

However, comments from TSMC management altering some full-year projections at the chip maker’s earnings call that were cited by Wedbush Securities and Jefferies analysts may have outweighed the earnings beat.

While noting that demand for its technology to power AI technology remains high, TSMC executives said they are projecting semiconductor revenue overall to rise 10% year-over-year in 2024, compared to its own prior projections of at least 10% …