Key takeaways
- TSMC shares fell approximately 16.4% from their monthly peak of $485.80
- TSMC reported a 68.7% increase in quarterly net profit and raised its revenue forecast
- TSMC's October revenue figures, scheduled for Nov. 10, could provide more insight into semiconductor demand
Taiwan Semiconductor Manufacturing Company (TSMC) experienced a sharp reversal in October 2026 when its stock fell approximately 16.4% from its monthly closing high despite reporting record quarterly earnings and raising its revenue forecast. The decline came as concerns over artificial intelligence spending and semiconductor valuations weighed on technology stocks.
TSMC shares closed Oct. 30 at $406.13, down 5.95% for the day and approximately 16% for the month. The stock reached a closing high of $485.80 on Oct. 5.
TSMC Stock Reverses October Rally
TSMC started October with strong momentum, and climbed from $459.20 on Oct. 1 to $485.80 by Oct. 5. However, the rally quickly lost steam as investors began reassessing the valuations of semiconductor companies benefiting from the AI boom.
By Oct. 14, TSMC stock retreated to $430, before declining even more to $412.61 on Oct. 16.
The stock briefly recovered toward the end of the month by reaching $439.51 on Oct. 28. However, renewed selling erased those gains. On Oct. 30 alone, TSMC lost 5.95%, with nearly 22 million shares changing hands.
Record TSMC Earnings Fail to Reverse Stock Decline
The downturn occurred despite TSMC reporting exceptionally strong third-quarter financial results on Oct. 15. The chipmaker generated $46.72 billion in quarterly revenue, which represents a 41.2% year-over-year increase in US dollar terms.
Net profit climbed 68.7% to NT$763.06 billion, while demand for advanced semiconductor manufacturing remained strong.
(Source: investor.tsmc.com)
TSMC also raised its full-year revenue growth forecast to approximately 44% and projected fourth-quarter revenue between $52.3 billion and $54.3 billion.
Nevertheless, the impressive results failed to sustain a recovery in TSMC stock. Shares declined 1.80% on the earnings announcement day and another 2.28% during the following trading session.
What's Next for TSMC Stock?
TSMC enters November facing a complicated relationship between strong business fundamentals and weakening investor confidence in AI-related equities. Its next important catalyst is the October revenue announcement, which is scheduled for Nov. 10. This could provide some more insight into semiconductor demand.
For investors, the question is whether TSMC's October selloff was a temporary correction in AI stocks or the beginning of a more sustained period of pressure on semiconductor valuations.
