TSMC (TSM) Plunges 3.45% in Pre-Market Trading Due to Mixed Analyst Estimates and Revenue Trends

TSMC (TSM) plunged 3.4545% in pre-market trading on December 18, 2025, underperforming broader market indices that saw more moderate declines. The stock fell to $276.96, marking one of the sharpest declines among major tech names.

The sell-off followed mixed signals from recent analyst estimates and revenue trends. While TSMC’s November revenue rose 24.5% year-over-year, it dropped 6.5% month-over-month to NT$344 billion, trailing expectations. Analysts at Bernstein SocGen Group maintained an Outperform rating with a $330 price target, citing strong AI chip production for Nvidia and Broadcom, but noted near-term volatility amid sector-wide jitters.

Key data highlighted a 0.18% downward revision in the Zacks Consensus EPS estimate over the past month, coupled with a #4 (Sell) Zacks Rank. The stock’s forward P/E of 28.33 aligns with its industry average, but weak near-term guidance and broader tech sector pressures contributed to the sharp pre-market selloff.

Looking ahead, the selloff appears to be part of a broader pattern of short-term volatility in the chip manufacturing sector. TSMC’s forward P/E of 28.33 is consistent with its industry peers, but the sharp drop in pre-market trading signals a loss of investor confidence in the near-term outlook. Analysts suggest that while TSMC remains a key player in the AI chip supply chain, near-term earnings risks and macroeconomic concerns could prolong the current bearish sentiment.