Taiwan Semiconductor Manufacturing Company (TSMC) saw its stock decline by 3.36% on January 13, 2025, closing at $201.36, down from the previous close of $208.37. The stock opened at $200.52 and fluctuated between a low of $200.05 and a high of $203.59, with trading volume reaching 15,051,006 shares, surpassing the average daily volume. The decline was primarily driven by concerns over potential revenue and profit margin challenges, as highlighted in a Morgan Stanley report forecasting a 5% q/q revenue decline for TSMC in Q1 2025 due to seasonal factors affecting iPhone production. Additionally, Macquarie's research indicated that TSMC's profit margins might normalize starting Q2 2025, influenced by uncertainties in high-performance computing orders from China.
Further exacerbating the situation, the U.S. announced new controls on AI chip exports, impacting TSMC and other semiconductor stocks. This regulatory news contributed to a broad sell-off in AI chip stocks, including TSMC, Nvidia, and Micron. The geopolitical dynamics and export restrictions have heightened investor concerns, adding to the downward pressure on TSMC's stock.