Taiwan's integrated circuit manufacturing company ( TSMC ) experienced a significant reversal in October 2026: despite the company announcing record quarterly profits and raising revenue forecasts, its stock price still fell by about 16.4% compared to the month's high closing point. This decline occurred as concerns about artificial intelligence spending and semiconductor valuations continued to weigh on tech stocks.

TSMC's stock price reverses the gains from October

TSMC had a strong start in October, with its stock price rising from $459.20 on October 1 to $485.80 on October 5. However, as investors began to re-evaluate the valuations of semiconductor companies driven by the AI craze, this upward trend quickly lost momentum.

By October 14, TSMC's stock price had fallen to $430, and on October 16 it further dropped to $412.61.

Before the end of the month, the stock price rebounded to $439.51 on October 28, but then faced another round of selling pressure, erasing all of those gains. On October 30 alone, TSMC's stock price fell by 5.95%, with trading volume approaching 22 million shares.

Record-breaking performance fails to reverse the downward trend

Nevertheless, the financial results for the third quarter, announced on October 15th, were exceptionally strong. The chip manufacturer reported quarterly revenue of $46.72 billion, representing a year-on-year increase of 41.2% when calculated in US dollars.

Net profit increased by 68.7% to NT$763.06 billion, while the demand for advanced semiconductor manufacturing remains strong.

TSMC has also raised its full-year revenue growth forecast to around 44%, and expects revenue in the fourth quarter to be between $52.3 billion and $54.3 billion.

What will happen to TSMC's stock price next?

For investors, the question is whether TSMC's sell-off in October was merely a brief correction of the AI stock, or the beginning of a more sustained period of pressure on semiconductor valuations.

Danielle Walgenbach

Danielle is a journalist who covers cryptocurrency and financial markets, with over four years of reporting experience. She is adept at breaking down complex financial and economic topics into clear and solid reports.