TSMC shares fell 3.45% in pre-market trading on Dec 18 2025 as Nasdaq dropped 1.81% amid heightened volatility

TSMC shares fell 3.45% in pre-market trading on December 18, 2025, outpacing broader market declines. The semiconductor giant’s stock closed at $276.96, reflecting heightened volatility amid a 1.81% drop in the Nasdaq.

The decline occurred despite TSMC’s robust AI-driven revenue growth, fueled by demand for advanced chips from clients like Apple and broader industry players. Analysts highlighted that while the company maintains a strong leadership position in semiconductor manufacturing through strategic R&D investments, near-term macroeconomic concerns and mixed quarterly performance—such as a 6.5% monthly revenue drop in November—have weighed on investor sentiment.

Market participants remain divided, with some emphasizing long-term structural growth from AI infrastructure and others cautioning about valuation risks. Bernstein and SocGen reiterated an “Outperform” rating with a $330 price target, but Zacks assigned a #4 (Sell) rank, reflecting uncertainty over execution risks. TSMC’s forward P/E ratio aligns with industry averages, yet its PEG ratio of 0.99 suggests valuation is largely justified by growth expectations.

As AI demand persists, investors are balancing short-term volatility against TSMC’s competitive edge in advanced chip production. Earnings releases and macroeconomic factors, including interest rates, will likely shape the stock’s trajectory in the coming quarters.