Why Taiwan Semiconductor Manufacturing Stock Is Diving Following Nvidia News Today

Why Taiwan Semiconductor Manufacturing Stock Is Diving Following Nvidia News Today

Taiwan Semiconductor Mfg. Co. Ltd. TSM shares are trading lower by 2.68% to $87.39 during Monday's trading session in sympathy with NVIDIA after the company issued preliminary second-quarter revenue guidance below estimates and cited weaker gaming revenue.

What Happened?

Nvidia sees preliminary second quarter revenue of $6.70 billion versus the previous outlook of $8.10 billion.

The company says the shortfall relative to the May revenue outlook of $8.10 billion was primarily attributable to lower sell-in of Gaming products reflecting a reduction in channel partner sales likely due to macroeconomic headwinds.

Nvidia added that in addition to reducing sell-in, the company implemented pricing programs with channel partners to reflect challenging market conditions that are expected to persist into the third quarter.

"Our gaming product sell-through projections declined significantly as the quarter progressed," said Jensen Huang, founder and CEO of NVIDIA. "As we expect the macroeconomic conditions affecting sell-through to continue, we took actions with our Gaming partners to adjust channel prices and inventory.

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According to data from Benzinga Pro, Taiwan Semiconductor Manufacturing has a 52-week high of $145.00 and a 52-week low of $73.74.

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