Why Taiwan Semiconductor stock had a day to forget

In almost every stock, sooner or later there is a day when the market just can’t decide whether to buy or sell. That’s what happened to the powerful chipmaker Taiwan Semiconductor Manufacturing (TSM -0.03%) (TSMC) on Thursday. Not coincidentally, this was the trading session right after the current hot chip company released its latest market-shattering news. TSMC traded sideways that day, which happened to match the flat bell line S&P 500 index.

Here come the professional bulls

This was despite some positive new analyst presence on TSMC stock. Numerous experts felt compelled to weigh in on TSMC as the graphics processing unit (GPU) king and the company’s equal Nvidia disclosed its fiscal 2025 second quarter results after the market closed on Wednesday.

City Groupone, he feels there is more upside in store for TSMC stock. In a new analysis, the bank pointed out that the company was able to double the capacity to produce chip-on-a-wafer-on-substrate (CoWoS). This state-of-the-art “packaging” technology is designed for high-performance computing (HPC) and artificial intelligence (AI) functionality.

The bank reiterated its buy recommendation on TSMC, as well Bank of America. BofA’s new research note on the chipmaker shows continued encouragement that demand for AI capability is strong, among other factors supporting the Taiwanese company.

Ignoring the industry for now

Nvidia’s trailing and anticipated growth will almost certainly help support TSMC’s business. However, expectations for the former company’s quarter were extremely high, and whenever that happens, several market players are sure to be disappointed. Regardless of the continued praise from pundits, at least some of these investors will continue to give Nvidia and any related stocks the cold shoulder for a bit.