UMC's stock plunged over 9% even though the chipmaker just reported strong earnings and a bullish 2027 outlook, showing investors are more nervous than the numbers suggest.

• UMC shares tanked more than 9% in early trading, briefly hitting the daily limit down, even after third-quarter profit and revenue both came in higher year-over-year.
• Despite the sell-off, bargain hunters piled in, with tens of thousands of buy orders queued up, betting the drop is overdone.
• Management raised capital spending by another $3.2 billion to expand faster, pointing to AI-driven demand for power chips, connectivity, silicon photonics, and advanced packaging as new growth drivers.
• The company expects pricing to turn positive in 2027, with average chip prices up 10% from the prior year, a reversal after years of price declines.
• The broader chip-manufacturing sector is getting bullish analyst coverage, with peers like TSMC and PSMC also expected to raise prices and post strong profits.

Outlook: If 2027 pricing gains play out as management described, the stock drop may prove to be a buying opportunity rather than a warning sign.