TSMC Stock Slips. Why Strong Revenue Growth Isn't Enough for Investors -- Barrons.com

Dow Jones03-10

By Adam Clark

Taiwan Semiconductor Manufacturing's U.S.-listed shares edged lower early Tuesday even after another set of strong monthly revenue figures, as seasonal weakness and lingering concerns about energy supplies appeared to outweigh the headline growth.

Taiwan Semi, or TSMC, reported February net revenue of 317.66 billion New Taiwan dollars ($9.98 billion). That was up 22% from a year earlier but down 21% from January.

The chip manufacturer doesn't provide a detailed breakdown of its monthly revenue figures, but the growth rate was likely affected by the timing of the Lunar New Year, which fell in February this year and January last year. Combined revenue for January and February rose 30% from the same period in 2025, roughly in line with TSMC's guidance for full-year 2026.

TSMC's American depositary receipts were down about 0.1% in premarket trading. The ADRs have fallen 3.7% over the past month, although they have more than doubled over the past 12 months.

Investors are also looking for reassurance that Taiwan's energy supplies won't be disrupted by fighting in the Middle East, particularly shipments of liquefied natural gas. TSMC accounts for roughly 9% of Taiwan's electricity consumption, with gas the largest source of power on the self-ruled island.

Taiwan's minister of economic affairs said Monday that Taiwan's natural-gas supply would be sufficient through April and there were no concerns over a shortage, according to local media.

Chip stocks have been volatile in recent days, especially in Asian markets, as markets assess how the Iran conflict will affect the energy-intensive sector.

Memory-chip makers SK Hynix and Samsung Electronics rose 12% and 8.3%, respectively, in local trading in South Korea on Tuesday after President Donald Trump said Monday he expected a swift end to the military campaign. The heavyweight companies helped push up South Korea's KOSPI Composite Index 5.4% after steep losses in previous days.

Write to Adam Clark at adam.clark@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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March 10, 2026 09:32 ET (13:32 GMT)

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