TSMC shares fall after record Q3 profit, Asia chipmaking stocks mixed

Investing.com-- TSMC (TW:2330) shares retreated on Friday, facing some profit-taking from record highs even as the world’s largest contract chipmaker clocked a record-high third quarter profit and forecast strong artificial intelligence-fueled demand.

Broader Asian chipmaking stocks also took middling cues from TSMC and were a mixed bag on Friday, amid broader caution over U.S.-China trade tensions. 

TSMC fell 2% in Taipei trade to T$1,450, after hitting a record high of T$1,485 earlier this week. U.S. shares of the chipmaker (NYSE:TSM) fell 1.6% overnight.  

The company clocked a record-high third-quarter profit, and slightly hiked its 2025 revenue outlook on what it sees as sustained, robust AI-fueled demand.

TSMC also dismissed concerns over Chinese chip sales being stalled by Sino-U.S. trade ructions, stating that rising AI spending by its largest customers– which include NVIDIA Corporation (NASDAQ:NVDA) and Apple Inc (NASDAQ:AAPL)– was likely to offset any headwinds in China. 

Analysts largely lauded TSMC’s earnings, with Citi hiking its target price on the stock to T$1,800 from T$1,600 on expectations that the company will continue to prosper from increased AI demand and chip production. UBS also hiked TSMC’s price target. 

Deutsche Bank, however, flagged some caution over the chipmaker, warning that outsized AI demand could overshoot TSMC’s capacity and present opportunities for competitors in the coming year. 

Broader chipmaking stocks were a mixed bag on Friday. The sector had advanced sharply in the run-up to TSMC’s earnings, and likely faced some profit-taking amid broader market caution.

In Japan, Nvidia supplier Advantest Corp. (TYO:6857) sank 3.3%, while Renesas Electronics Corp (TYO:6723) fell 2%.

Chinese chipmakers clocked bigger losses, with Semiconductor Manufacturing International Corp (HK:0981)– the country’s biggest chipmaker by volume– down over 5% in Hong Kong trade. Peer Hua Hong Semiconductor Ltd (HK:1347) lost 3.4%, while Chinese AI darling Cambricon Technologies Corp Ltd (SS:688256) shed 1.6%. 

South Korea’s Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660) were outliers, rising 0.5% and 3.1%, respectively, to record highs. The two have been on a tear since last week, after they entered deals to supply chips to and build data centers with AI major OpenAI.