Taiwan Semiconductor (TSM 35.09, +0.46) has added 1.3% despite issuing below-consensus guidance for the second quarter.
The semiconductor manufacturing giant reported that its June revenue grew 3.4% year-over-year to TWD84.20 billion and that second quarter revenue is expected to total TWD213.86 billion, which is shy of current market expectations.
The semiconductor industry is known to follow cyclical trends associated with the production of consumer electronics. Furthermore, the second quarter has traditionally represented the weakest stretch for semiconductor manufacturers before activity ramps up into the year-end.
Shares of Taiwan Semiconductor have taken today's announcement in stride, suggesting investors may have already anticipated some softness in sales during the second quarter. The stock notched a record closing high of $36.83 in early June and set a fresh intraday record two weeks later. Some backtracking has followed, but the stock remains just 5.0% below its record high. The broader PHLX Semiconductor Index, which hit its best level in nearly 17 years in June, has given up 8.0% since marking that multi-year high.