TSM Earnings Beat Fails to Halt Chip Selloff

Taiwan Semiconductor Manufacturing posted quarterly results that met or exceeded expectations, yet semiconductor stocks sold off sharply this week. The Philadelphia Semiconductor Index erased gains from earlier in the week and finished lower.

TSM, which carries an Alpha Score of 65 out of 100, reported strong demand for computing infrastructure tied to the AI buildout. The stock page for TSM tracks the company's score and sentiment.

No single catalyst was cited by traders for the reversal. The move followed a period of heavy positioning in AI-related names. The TSM results themselves underscored the strength of the AI buildout. The market's reaction suggests investors are looking past near-term earnings to other risks, including trade policy and the pace of capital spending.

The selloff was broad. Nvidia, AMD, and Intel all fell. The reversal came after a multi-week rally that had pushed the Philadelphia Semiconductor Index to a record high. Some traders said the move reflected profit-taking rather than a change in the fundamental outlook for AI demand.

TSM's earnings showed revenue growth of 36% from a year earlier, driven by sales of advanced chips used in data centers. The company's guidance for the current quarter also topped analyst estimates. The stock initially rose on the report before reversing.

The broader market also struggled. The S&P 500 fell 0.7% on the week, while the Nasdaq Composite dropped 1.2%. The moves came as the 10-year Treasury yield rose above 4.5% for the first time since November.

For TSM, the week's action left the stock down 3% from its high. The company's Alpha Score of 65 reflects a moderate outlook based on valuation and momentum metrics.