The stock price of TSMC (TSMC) experienced a decrease of 4.31% on October 28, 2024, which can be attributed to the following factors1:
- China Trade Breach: The most significant factor contributing to the decline in TSMC's stock price today is the news of a trade breach with China. TSMC has suspended shipments to China-based chip designer Sophgo after a chip manufactured by TSMC was found in a Huawei AI processor, which is restricted for use in the U.S. to protect national security23. This violation of trade restrictions has led to concerns about the company's compliance with U.S. export controls and potential penalties from the U.S. Department of Commerce.
- Investor Sentiment: The comments made by TSMC's founder Morris Chang at a company event over the weekend have also contributed to the decline in investor confidence. Chang has expressed concerns about the challenges ahead for the company due to the ongoing crackdown by U.S. regulators limiting the sale of advanced chips to China. He stated that free trade of semiconductors, particularly the most advanced semiconductors, has died, and TSMC needs to find ways to continue driving growth in this environment5. These comments have likely led to worries among investors about the company's future growth prospects.
- Market Conditions: The broader market conditions and events such as the Israeli airstrikes in Iran, which did not hit crucial oil facilities, have also influenced investor sentiment. The oil market dynamics and geopolitical tensions can impact the stock prices of companies like TSMC, which are sensitive to these factors6.
In conclusion, the decline in TSMC's stock price today can be attributed to a combination of factors including the China trade breach, investor sentiment following the comments by the company's founder, and broader market conditions.
10/29/2024 01:34am
