Movement Alert|United Microelectronics Rises 5.97% in Regular Trading, Q2 Earnings Massively Beat Expectations as Analyst Upgrade Fuels Rally

Market Focus07-31 21:56

On July 31, United Microelectronics rose 5.97% in regular trading, trading at $19.31/share, with turnover of approximately $50.62 million. The rally was driven by the continued fermentation of a blowout Q2 earnings report and an investment bank upgrade.

On the earnings front, United Microelectronics reported Q2 EPS of $0.54, exceeding the analyst consensus estimate of $0.15 by 260%, while revenue of $2.176 billion also surpassed the $2.060 billion expectation. CEO Jason Wang attributed the strong quarter to robust communications and consumer demand, with wafer shipments rising 10.6% sequentially and capacity utilization improving to 85%. The board simultaneously approved approximately $50 billion in capital expenditure for phased capacity expansion at its Singapore P4 facility and a new fab in Tainan, Taiwan, targeting AI, edge computing, silicon photonics, and advanced packaging opportunities. Additionally, Yuanta Securities upgraded the stock from Hold to Buy with a target price of NT$125, providing a dual catalyst that sustained upward momentum.

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