TSMC reports 77 percent profit surge as Uber buys Delivery Hero for $14.8 billion
Massive corporate acquisitions and strong earnings from aerospace and freight companies highlight a divergence in market performance, even as record chipmaker profits fail to lift the broader semiconductor sector.
Taiwan Semiconductor Manufacturing Company reported a 77 percent increase in second-quarter operating profit and announced an additional $100 billion investment in its Arizona foundry to meet artificial intelligence demand. Despite the results, New York-listed shares fell more than 4 percent in premarket trading. This weakness extended across the broader semiconductor complex, dragging down Nasdaq futures and pulling down shares of Intel, AMD, Micron, and Sandisk following recent volatility triggered by the U.S. listing of SK Hynix.
In major consolidation news, Uber agreed to acquire German peer Delivery Hero in a $14.8 billion deal. Chief Executive Dara Khosrowshahi stated the transaction provides compelling value and expands the company's rides and delivery markets by nearly 50 percent. Uber increased its purchase price after Delivery Hero rejected a late May offer, sending Uber shares slightly higher on the announcement.
Eli Lilly continues its acquisition strategy by purchasing psychedelic drugmaker AtaiBeckley for $2.8 billion upfront to acquire a depression treatment currently in late-stage trials. This move diversifies the company beyond its current obesity treatments. Goldman Sachs, acting as exclusive financial advisor for the transaction, saw its shares rally following a Bank of America price target increase to $1,300 amid a broader boom in financing and mergers.
Earnings beats also drove significant gains in the healthcare and industrial sectors. UnitedHealth shares soared after delivering a bottom-line beat and raising full-year profit guidance, marking a turnaround under Chief Executive Stephen Hemsley. Meanwhile, GE Aerospace reported higher sales, profits, and free cash flow, raising its full-year outlook for revenue and operating income despite ongoing geopolitical challenges.
Transportation and technology stocks also showed distinct momentum. J.B. Hunt shares jumped over 7 percent on a strong second quarter, prompting price target increases from Baird and Citi and signaling a potential end to the multi-year freight bear market. In technology, KeyBanc raised its Amazon price target to $330, citing strong retail performance and an inflection in AWS, even as satellite and data center spending pressures margins.
