Why Taiwan Semiconductor Manufacturing Company Shares Are Falling

Taiwan Semiconductor Mfg. Co. Ltd. TSM shares are trading lower by 3.8% to $88.17 during Wednesday's session. Semiconductor and chip stocks are declining, possibly in sympathy with Texas Instruments. The company reported disappointing third-quarter sales and provided fourth-quarter revenue guidance that fell short of expectations.

What Happened With Texas Instruments?

Texas Instruments reported third-quarter earnings of $1.85 per share, slightly beating analysts' expectations of $1.81, but still showing a 25.1% drop compared to the previous year.

Quarterly sales were $4.53 billion, falling short of the estimated $4.57 billion and declining by 13.53% compared to the same period last year....Read More

Why This Matters To TSM Investors

Taiwan Semiconductor Manufacturing Company is a major semiconductor manufacturing company, and it is heavily reliant on its clients' demand for semiconductor products.

When a key customer like Texas Instruments reports lower sales results and provides weak revenue guidance, it can indicate reduced demand for semiconductors.

This might lead to concerns about overcapacity at TSMC's manufacturing facilities and a decrease in orders for their manufacturing services, potentially impacting their revenue and profitability.

See Also: What's Going On With Amazon Stock?

According to data from Benzinga Pro, TSM has a 52-week high of $110.69 and a 52-week low of $59.43.