The surge in put options, bets on the stock’s decline, indicates increased bearish sentiment. Other tech giants like NVIDIA Corp. (NVDA) and Super Micro Computer Inc. (SMCI) have also experienced significant stock price drops, contributing to broader tech sector concerns.
TSMC’s challenges mirror wider trends in the chip industry. The company, a key supplier to Nvidia and Apple Inc., recently revised its growth forecast for non-memory chip markets to 10%, down from “more than 10%,” due to concerns about decreased demand for consumer electronics.
Despite these challenges, Taiwan is strengthening its “chip diplomacy” efforts to maintain its position as a leading chip producer through international partnerships with the U.S., Canada, France, and Germany, aiming to support chip design engineer development and nurture tech talent.
TSMC closed Monday up 1.6% at $129.75, with a slight after-hours decline. However, the stock remains up 27.79% year-to-date. Nvidia is trading at $795 (65.08% YTD increase), while Super Micro Computer is at $717 (151.19% YTD increase).
