Taiwan Semiconductor (TSM) and ASML’s post-earnings Price Movements May be a Sign of What’s to Come from Chip Firms

Post Content

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the

8 Best AI Stocks to Buy According to Billionaire Ken Griffin.

On April 16, 2026, CNBC reported that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and ASML reported solid earnings but saw shares dip, suggesting high market expectations. TSMC’s first-quarter profit jumped by 58%, above expectations and marking a fourth straight record quarter. CEO C.C. Wei cited “extremely robust” AI-driven demand. High-performance computing generated 61% of sales, up from 55% in the previous quarter, with gross margins reaching 66%. Shares fell nearly 3% on Thursday.

On the other hand, ASML posted solid results and an improved forecast, but shares declined by as much as 6.5% before closing down about 2.5% lower, weighed down by China sales fears and lofty expectations. CEO Christophe Fouquet said that the potential output of EUVs in 2027 could reach 80 units depending on demand.

Jordan Klein of Mizuho told CNBC that investors had already priced in excellent performance, bringing in a “fast-money rotation.” Smartphone revenue fell 11% quarter over quarter due to a memory scarcity.

Taiwan Semiconductor (TSM) and ASML's post-earnings Price Movements May be a Sign of What's to Come from Chip Firms — Taiwan Semiconductor (TSM) and ASML’s post-earnings Price Movements May be a Sign of What’s to Come from Chip Firms

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells integrated circuits and wafer-based semiconductor devices. Its chips are used in personal computers and peripherals, information applications, wired and wireless communications systems, automobiles, and industrial equipment, as well as consumer devices such as cellphones, digital televisions, gaming consoles, and digital cameras.

While we acknowledge the potential of TSM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Disclosure: None. Follow Insider Monkey on Google News.