TSMC shares drop 3.45% as investor caution rises ahead of key earnings and macroeconomic data

TSMC shares fell 3.45% in pre-market trading on Dec. 18, 2025, signaling heightened investor caution ahead of key earnings reports and macroeconomic data releases. The decline marked one of the chipmaker’s sharpest pre-market dips in recent months.

Analysts attributed the selloff to growing concerns over near-term demand softness in key markets, particularly in AI infrastructure and consumer electronics sectors. Recent industry reports highlighted potential inventory adjustments at major tech clients, prompting speculation about Q1 2026 revenue visibility for TSMC. The drop also coincided with broader market anxieties over U.S. interest rate policy and global semiconductor capital expenditure trends.

Despite the sharp pre-market decline, the stock has maintained its year-to-date gains amid ongoing strategic investments in advanced packaging technologies and 3nm node capacity expansion. However, short-term technical indicators show increasing pressure as the 50-day moving average crosses below key support levels, raising questions about near-term momentum.

Market participants are now closely watching for any follow-through selling pressure in the coming sessions. A breakdown below the critical support zone near $73 could trigger further risk-off sentiment, particularly in a market environment where liquidity remains skewed toward large-cap growth stocks. Analysts suggest that positioning ahead of the Q4 2025 earnings report will likely determine whether the decline turns into a short-term bottoming pattern or continues to deteriorate.