TSMC Stock Slips As Monthly Revenue Declines Despite 34% Annual Jump: Retail Chatter Soars

U.S.-listed shares of Taiwan Semiconductor Manufacturing (TSMC) edged down over 1% as markets opened on Tuesday, despite the company reporting a 34% jump in November revenue compared to a year ago. 

TSMC reported November sales of $8.5 billion, bringing its year-to-date revenue to $81 billion — a 31.8% increase compared to $61 billion in the same period last year. 

The world’s largest contract chipmaker has experienced significant growth in recent years, driven by booming demand for advanced semiconductors, particularly for artificial intelligence (AI) applications. 

TSMC has benefited from its key partnerships with tech giants like Apple and Nvidia, which rely on its cutting-edge chips for their AI and consumer technology products.

However, while the annual growth rate pushed retail sentiment higher on Stocktwits, a sequential decline of 12.2% in monthly revenue may have tempered market enthusiasm. TSMC’s monthly revenue numbers have historically been a gauge for chip demand, especially those used in high-performance computing (HPC) and AI.

Retail sentiment around the stock turned ‘extremely bullish’ (89/100) from ‘bullish’ a day ago, as chatter flipped to ‘high’ from ‘low’.

Users pointed to the company’s strong revenue figures as evidence of sustained growth from AI technologies, even as concerns linger about a potential slowdown in overall demand.

Nvidia’s is reportedly in talks with TSMC to produce its Blackwell AI Chips at the contract manufacturer’s new plant in Arizona. 

However, Nvidia’s stock remains under pressure due to China’s anti-trust probe, with retail sentiment trending bearish (44/100) on Stocktwits.

TSMC’s robust revenue performance has helped fuel a near-doubling of its stock price in 2024, with bullish investors seeing long-term potential in AI-driven demand. 

(USD$1 = NT$0.031)

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