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Taiwan Semiconductor Manufacturing Company Ltd. ($TSM) Stock Forecast: Down 5.0% Today

Morpher AI identified a bearish signal. The stock price may continue to fall based on the momentum of the negative news.

What is Taiwan Semiconductor Manufacturing Company Ltd.?

Taiwan Semiconductor Manufacturing Company (TSM) is a leading global semiconductor company known for its cutting-edge fabrication technology.

Why is Taiwan Semiconductor Manufacturing Company Ltd. going down?

TSM stock is down 5.0% on Aug 20, 2025 13:50

  • TSM's bearish movement today could be attributed to concerns about the sustainability of margins due to the company's overseas fabrication expansion.
  • The market might be reacting negatively to the increased pressure on margins in the future.
  • Investors may be worried about the potential impact on TSM's profitability as it invests heavily in global fabs, leading to a sell-off of the stock.

TSM Price Chart

TSM Technical Analysis

TSM News

TSM's Overseas Fabrication Push Ramps Up: Are Margins Sustainable?

Taiwan Semiconductor ramps up global fabs in the United States, Japan, and Europe, but soaring investments raise pressure on margins in 2025 and beyond.

https://www.zacks.com/stock/news/2735479/tsms-overseas-fabrication-push-ramps-up-are-margins-sustainable

0 Missing News Article Image TSM's Overseas Fabrication Push Ramps Up: Are Margins Sustainable?

Taiwan Semiconductor Manufacturing Company Ltd. Price History

03.03.2025 - TSM Stock was down 5.2%

  • TSM stock experienced a significant drop of 18% year-to-date, raising concerns among investors about its expansion plans and competition with Intel.
  • The scrutiny faced by TSM's $100 billion U.S. investment plan, coupled with accusations of "stealing" U.S. semiconductor business, likely contributed to the bearish market movement.
  • Despite reaffirming its commitment to Taiwan with new initiatives like the Kaohsiung fab and 2nm chip production, the ongoing uncertainties surrounding its U.S. expansion plans may have overshadowed these positive developments, leading to the bearish trend.

23.03.2025 - TSM Stock was up 5.5%

  • TSMC's Arizona factory facing a $441 million loss due to supply chain disruptions and high labor costs could have initially raised concerns among investors, leading to a temporary dip in the stock price.
  • The challenges posed by the U.S. chip sanctions on China might have created uncertainty around TSMC's future operations and partnerships, causing some investors to hesitate.
  • Despite these challenges, TSMC's strong Q1 revenue growth of 41.6% driven by demand for its 3-nm chips likely reassured investors and contributed to the bullish movement in the stock.
  • The overall positive outlook for TSMC, with AI-fueled growth and strong revenue performance, likely outweighed the short-term challenges, leading to the bullish market movement.

24.01.2025 - TSM Stock was down 2.4%

  • The surge in bearish options activity towards Taiwan Semiconductor (TSM) suggests that some deep-pocketed investors are taking a pessimistic stance on the stock.
  • A potential deal involving Intel (INTC), Broadcom (AVGO), and Taiwan Semiconductor (TSM) could have influenced market sentiment, leading to increased volatility and a bearish movement in TSM's stock price.
  • Investors might be reacting to the uncertainty surrounding the implications of the reported deal on Taiwan Semiconductor's future prospects, contributing to the downward pressure on the stock.

16.03.2025 - TSM Stock was down 5.1%

  • The bearish movement in TSM's stock today could be attributed to the uncertainty surrounding the impact of China's tariffs on U.S.-made chips and the exemption of TSM-made chips from these tariffs.
  • Despite the strong demand for AI chips driving revenue growth in Q1, the rising operational costs may have raised concerns among investors about the company's profitability.
  • President Trump's announcement of a semiconductor tariff plan and the potential exemptions for certain tech products could have added to the market volatility, impacting TSM's stock negatively.
  • The overall market sentiment towards semiconductor stocks, especially those involved in the U.S.-China trade tensions, might have contributed to the bearish movement in TSM's stock today.

27.01.2025 - TSM Stock was down 5.0%

  • The bearish movement in TSM's stock today can be attributed to:
  • Despite positive predictions regarding rising demand and potential regulatory changes, deep-pocketed investors have taken a bearish stance on the stock, as indicated by increased options activity.
  • This shift in investor sentiment may be driven by concerns over the sustainability of TSM's recent surge in stock price, fueled by AI developments and key partnerships.
  • The market players' focus on the bearish options activity suggests a cautious outlook on TSM's future performance, leading to the downward pressure on the stock price today.

20.05.2025 - TSM Stock was down 2.4%

  • Recent significant investments by a prominent investment firm in chip giants AMD and TSM suggest a positive outlook on the semiconductor industry's future.
  • However, the same investment firm's decision to sell off shares in Circle Internet Group might have triggered concerns about the broader tech sector, resulting in a downward trend for TSM.
  • Market instability and potential supply chain issues likely also influenced the decline in TSM's stock price.

07.07.2025 - TSM Stock was up 6.4%

  • TSM saw positive market activity following recent remarks by President Trump regarding potential tariffs on semiconductor companies not based in the U.S., potentially benefiting TSM given its strong presence in Taiwan.
  • Investor preference for TSM over competitor Applied Materials (AMAT) based on TSM's growth prospects and earnings performance could have contributed to the upward trend in TSM's stock price.
  • Favorable industry sentiment towards TSM, along with the possibility of tariffs impacting rival firms, likely drove the increase in TSM's market value.

04.02.2025 - TSM Stock was up 5.5%

  • TSMC's recent notable surge is linked to its announcement of a substantial $165 billion investment in the U.S. chipmaking industry. This strategic expansion initiative encompasses the development of new fabs, packaging facilities, and an R&D center, highlighting the company's dedication to innovation and expansion.
  • The market's positive response to TSMC's projected $100 billion U.S. investment, expected to be revealed by President Donald Trump, has further bolstered investor confidence and optimism in the company's future outlook.
  • Against the backdrop of an escalating global chip conflict and the U.S. government's push for enhanced chip production within its borders, investors interpret TSMC's potential U.S. investment as a strategic maneuver to strengthen its position in the semiconductor market and potentially gain a competitive advantage.
  • The upward trajectory in TSMC's market performance today reflects the firm's ambitious growth strategies and the favorable market sentiment surrounding its strategic U.S. investments amid escalating demand for advanced semiconductor technologies.

05.07.2025 - TSM Stock was down 2.6%

  • The notable bearish movement in TSM's stock may be linked to wealthy investors taking a bearish stance on the company, as evident from public options records.
  • This change in sentiment could have been prompted by worries about the company's future growth outlook or industry-related challenges.
  • It is advisable for investors to heed these cues from institutional investors as they can offer insights into possible future market trends and sentiment regarding a specific stock.

24.05.2025 - TSM Stock was up 5.3%

  • TSM experienced a bullish movement today, possibly driven by the positive sentiment surrounding the company.
  • The comparison with Lam Research might have highlighted TSM's strengths and growth potential, attracting investors.
  • Cathie Wood's significant investment in TSM could have boosted investor confidence in the stock, leading to the bullish movement.
  • Overall, the combination of positive industry outlook, strategic investments, and comparative analysis may have contributed to TSM's strong performance today.

11.03.2025 - TSM Stock was up 5.6%

  • TSM stock experienced a bullish movement as China's decision to exempt Taiwan-made chips from U.S. tariffs provided a significant boost to the company.
  • The exemption from tariffs gave TSM a competitive advantage over U.S. fab operators, leading to a surge in investor confidence and stock price.
  • This development underscores the interconnected nature of global supply chains in the semiconductor industry and how geopolitical decisions can impact stock performance.
  • TSM's strong position in the market, coupled with favorable trade policies, contributed to its bullish movement despite the overall market volatility.

20.07.2025 - TSM Stock was down 5.0%

  • TSM's bearish movement today could be attributed to concerns about the sustainability of margins due to the company's overseas fabrication expansion.
  • The market might be reacting negatively to the increased pressure on margins in the future.
  • Investors may be worried about the potential impact on TSM's profitability as it invests heavily in global fabs, leading to a sell-off of the stock.
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Disclaimer
Morpher is not liable for the content of the AI investment insights. Like most GPT-powered tools, these summaries may contain AI hallucinations and inaccurate information. Morpher is not presenting you with any investment advice. All investments involve risk, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. These summaries do not constitute investment advice.