TSMC (SMC.US) experienced its largest-ever sell-off, with foreign investors selling nearly $6 billion in a single month.

Market VisionThursday, Aug 1, 2024 3:00 am ET

1min read

Wise Money APP noticed that last month, when the leaders of the AI industry were changing globally, TSMC (TSM.US) suffered the worst selling by foreign stock investors in history.

In July, overseas funds net sold $5.8 billion of TSMC shares listed in Taiwan, the highest monthly net selling since Bloomberg began tracking in 2008.

TSMC is a key partner of Nvidia (NVDA.US), and its share price fell 3.3% in July, breaking a record of nine consecutive months of gains that had seen the stock rise 85% since June, as investors became more concerned about the sustainability of AI-related revenues and geopolitical risks.

Gary Tan, investment portfolio manager at Allspring Global Investments, said: “With the US election approaching, we expect investors to focus more on the geopolitical risks of investing in TSMC, especially in the absence of significant positive developments in the AI space.”

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