TSM Stock Falls To Two-Month Low Amid Semiconductor Sell-Off Despite Wave Of Price Target Hikes

• The fall in TSM stock came despite multiple analysts raising price targets following TSMC's double-beat second-quarter (Q2) earnings report.
• DA Davidson, TD Cowen and Barclays all lifted their price targets, citing stronger AI-driven revenue expectations and higher capital spending plans.
• The broader semiconductor sector remained under pressure, with SOXX on track for its worst weekly performance in more than a year.

Shares of Taiwan Semiconductor Company (TSM) fell in morning trade on Friday, on track to hit a two-month low, despite getting a slew of price target hikes from Wall Street.

TSM’s stock dipped by more than 5% after markets opened, dropping below the $400 mark for the first time since May and marking the seventh consecutive day of losses. 

On Stocktwits, retail sentiment around the company continued to trend in ‘extremely bullish’ territory over the past day, accompanied by chatter at ‘extremely high’ levels.
 

Chip Stocks Extend Their Worst Week in Over a Year

The fall came as semiconductor stocks continued to trade lower on Friday, extending the tech rout they’ve been stuck in over the past week. The iShares Semiconductor ETF (SOXX) is on track for its worst weekly performance in over a year. 

Shares of Nvidia (NVDA), Micron (MU), Broadcom (AVGO), and Qualcomm (QCOM) dropped more than 2% each in pre-market trade. Meanwhile, Advanced Micro Devices (AMD) stock, Intel (INTC), and Marvell Technology (MRVL) fell more than 3% each. 

Wall Street Raises Price Targets After Q2 Beat

The price target hikes followed a strong second-quarter (Q2) earnings report from TSMC, which beat expectations on both revenue and profit. 

DA Davidson raised its price target on TSM’s stock to $500 from $450 and kept a ‘Buy’ rating on the shares, according to a note cited by TheFly. TD Cowen analyst Krish Sankar raised his price target on TSM’s stock to $440 from $400 while maintaining a ‘Hold’ rating, and Barclays raised its price target to $650 from $625. It kept an ‘Overweight’ rating on the shares, calling the earnings report a net positive. 

All three firms noted that TSMC's 2026 revenue guidance came in higher than expected on continued AI demand. They also noted that capital spending was raised by more than the market had anticipated, reflecting strong AI demand heading into 2027.

However, Barclays stated that gross margin guidance came in line with estimates, which was a “modest disappointment” given the otherwise strong report.

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