Taiwan Semiconductor Manufacturing Company (TSMC) experienced a decline in its stock price during mid-day trading on December 12, 2024, as it faced a confluence of market pressures. The semiconductor giant's shares fell 0.5%, trading as low as $192.21, amid a broader market pullback driven by a hotter-than-expected U.S. inflation report. The producer price index rose 0.4% in November, surpassing the anticipated 0.2% increase, which led to a rise in bond yields and weighed heavily on tech stocks, including TSMC. Additionally, the semiconductor sector is grappling with supply chain vulnerabilities, particularly due to the concentration of chip manufacturing in Taiwan, which poses significant geopolitical risks. These factors, combined with a decline in demand and increased competition in the AI chip market, have contributed to the downward pressure on TSMC's stock.
The Direxion Daily TSM Bull 2X Shares (TSMX) closed at $28.31, marking a 2.81% decline from the previous day's close. However, the ETF saw a post-market recovery, rising 2.54% to $29.03 as of 7:15 PM ET on Thursday, December 12th.