TSMC Shares Drop Despite Strong Earnings Amid Geopolitical Concerns

Taiwan Semiconductor's stock declines as geopolitical tensions and market trends outweigh positive financial results.

Taiwan Semiconductor reported a net profit of $7.6 billion for Q2, exceeding market expectations.
Despite strong earnings, TSMC shares fell nearly 2% on Friday and over 6% for the week.
Geopolitical risks, including comments from Donald Trump and Chinese military threats, have heightened investor concerns.
The broader market downturn, especially in tech stocks, has also impacted TSMC and other AI chip companies.
TSMC remains committed to keeping most of its operations in Taiwan while investing $65 billion in U.S. factories.