• Investors are awaiting TSMC earnings for signs of what is to return for the chip sector.

• AMSL sparked a panic on Tuesday because it slashed sales guidance for 2025.

• TSMC, a key customer of ASML, already reported revenue that exceeded expectations.

This week’s sell-off in chip stocks and lingering questions on the demand for artificial intelligence tech has raised the stakes for Taiwan Semiconductor Manufacturing Company’s coming earnings report.

The chipmaker will report its full third-quarter earnings within the early hours on Thursday. The outcomes will function a key update for investors eagerly anticipating signs of an industry slowdown after downbeat guidance from ASML triggered a sell-off in top semiconductor shares on Tuesday.

TSMC, which is certainly one of ASML’s largest customers and a top supplier to tech firms like Nvidia and Apple, revealed last week that it pulled in revenue of $759.69 billion Recent Taiwan dollars, or around $23.57 billion, within the third quarter, beating estimates.

TSMC edged 1% lower Wednesday afternoon, with shares trading around $187.82. The stock is up 84% year-to-date, thanks partly to the firm’s strong financial results to date in 2024.

Chip and semiconductor stocks, meanwhile, traded barely higher, with the SPDR S&P Semiconductor ETF rising nearly 1% by mid-day.

Traders are waiting for guidance from TSMC executives on the firm’s earnings call regarding demand in the present quarter in addition to the approaching yr.

Fears about demand were ignited recently when Nvidia reported results for the second quarter in August. The chip giant’s earnings beat estimates but fell wanting the loftiest projections, resulting in questions on cooling appetite for AI-enabling technology as firms have yet to report meaningful returns on huge capital expenditures within the space.

Since then, Nvidia has once more traded near all-time highs. Recent comments from CEO Jensen Huang point to extremely high demand for the next-generation Blackwell chip, which Huang has said can be sold out for the following 12 months.

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