What has Taiwan Semiconductor Stock Done Since Nvidia Earnings?

Taiwan Semiconductor Manufacturing Co TSM stock lost 4% in the last 30 days. Last month saw volatility as Nvidia Corp NVDA released its quarterly print and more.

The VanEck Semiconductor ETF SMH and iShares Semiconductor ETF SOXX, representing the semiconductor industry, have lost ~7% in the last 30 days. Now, let’s run down the events for Taiwan Semiconductor since Nvidia released its quarterly print.

On August 28, Nvidia reported second-quarter topline growth of 122% to $30.04 billion, quashing the analyst consensus of $28.68 billion.

Also Read: Intel Looks To Restructure Foundry Business, Bags Major US Deal and Government Grants

The company projected third-quarter revenue of $31.85 billion—$33.15 billion, versus the consensus of $31.77 billion.

Still, the stock dropped by 6% in after-hours trading, sending semiconductor stocks, including Taiwan Semiconductor, Advanced Micro Devices, Inc AMD, and Super Micro Computer, Inc SMCI, down as the print failed to impress the Street.

The semiconductor sector selloff continued in September, with U.S.-China geopolitical tensions intensifying due to the Western counterpart’s artificial intelligence technology embargo on the Asian counterpart.

Meanwhile, Taiwan Semiconductor remained invested in solidifying its moat by localizing neon gas production, a key chipmaking material disrupted by the Ukraine war, and fast-tracking the development of silicon photonics to address the energy and data transmission speeds needed by AI computing.

Taiwan Semiconductor projected a 50% growth in AI accelerators at the Semicon Taiwan industry forum in Taipei despite concerns over the sustainability of the AI frenzy, which is sending jitters across the market. Broadcom Inc’s AVGO quarterly print and guidance did little to contain the semiconductor selloff.

On the brighter side, reports indicated that the contract chipmaker’s production yield at the Arizona facility is at par with its Taiwan facilities.

Taiwan Semiconductor reported 33% topline growth in August 2024, testimony to the smartphone market recovery and continued demand for Nvidia AI chips. Analysts expect third-quarter revenue growth of 37%.

Some of Taiwan Semiconductors key September wins included a Alphabet Inc GOOG GOOGL Google smartphone deal involving Pixel 10 and Pixel 11 chips and Apple Inc’s AAPL A16 chip at its Arizona Fab.

Taiwan Semiconductor is up over 90% in the last 12 months as it led the global foundry market, commanding a 62% share in the second quarter of 2024.

Price Action: TSM stock closed at $167.28 on Wednesday.

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