Taipei, Feb 1, 2026, 06:52 GMT+8 — Market closed
- TSMC’s shares listed in the U.S. dropped 2.7% on Friday. In Taipei, shares also slipped as chip stocks lost momentum heading into the weekend.
- Rate jitters return, alongside China’s changing approach to high-end AI chip imports, as key issues for the week ahead.
- Investors are focused on U.S. jobs data due Feb. 6, with TSMC’s January sales report set for Feb. 10.
Taiwan Semiconductor Manufacturing Co (2330.TW) shares closed lower on Friday. As trading resumes Monday, investors are balancing concerns over interest rates with new signs that AI spending remains strong.
The pullback is significant since TSMC holds a critical position in the AI supply chain. Its stock swings often reflect not just company-specific factors but broader shifts in risk appetite and projections for chip demand.
This weekend, the market faces mixed signals. Taiwan’s economy posted a standout growth figure driven by AI-related exports, yet U.S. interest rates and policy news continue to dominate the action.
TSMC wrapped up Friday at NT$1,775 in Taiwan, slipping back from a peak reached just the day before that nearly matched its 52-week high, Financial Times data show. (FT Markets)
In the U.S., shares traded as American depositary receipts — a method letting investors purchase foreign stocks on U.S. exchanges — ended the day at $330.56, slipping 2.65%. (Yahoo Finance)
Wall Street’s major indexes ended Friday in the red, pressured by concerns over Donald Trump’s nomination of Kevin Warsh to head the Federal Reserve once Jerome Powell’s term expires in May. “Markets are calibrating” the implications of the appointment for future policy, said Michael Hans of Citizens Wealth. (Reuters)
Back in Taiwan, the government reported a preliminary 12.68% rise in fourth-quarter GDP compared to last year, with growth for 2025 pegged at 8.63%. The surge is credited to robust demand for chips and AI-related tech. Capital Economics noted that “continued strong demand” for AI-linked products is likely to sustain export strength through next year. (Reuters)
China policy risk remains a key concern. Sources say Chinese regulators have given conditional approval for AI startup DeepSeek to purchase Nvidia’s H200 chips, though final terms are still being worked out — underscoring how shipments depend as much on political factors as on market demand. (Reuters)
On Saturday, Jensen Huang pushed a bullish stance on spending, announcing plans for a “huge” investment in OpenAI and dismissing rumors of any friction as “nonsense.” He made the remarks after a meeting with suppliers in Taipei, including TSMC, Reuters reported. (Reuters)
That said, the downside is clear. If China keeps approvals sluggish or imposes strict conditions, the AI chip supply chain could stumble — and TSMC’s cutting-edge capacity depends on long lead times. Factor in rising yields and potential dips in AI capital spending, and the stock’s premium starts to look shaky. Meanwhile, competitors like Samsung Electronics and Intel are vying for the same clients, even though TSMC remains the leader.
The calendar fills up fast. Coming up next is the U.S. Employment Situation report for January, set for release on Feb. 6. This one morning alone could shift rate expectations significantly. (Bureau of Labor Statistics)
TSMC’s next key update comes with its January monthly sales numbers, due Feb. 10. That report will reveal if the AI-driven boost held steady through the end of last year and into Q1. (Tsmc)
