TECH - Key Apple Nvidia Chip Supplier's Stock Woes Not Yet Over? Here's What Options Data Shows | Benzinga
Investors anticipate a potential further drop in Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) stock, which has plummeted over 13% in the past six days.
What Happened: The chipmaker’s stock has been on a downward spiral since its April 11 earnings call, where it revised its growth forecasts for the semiconductor industry due to industry challenges. These revisions led to a market value loss exceeding $100 billion, as reported by Bloomberg on Monday.
The surge in put options, bets on the stock’s decline, reflects increased bearish sentiment. Open interest for both put and call options on Friday was 20% higher than their 20-day averages, according to Bloomberg.
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Other tech giants like NVIDIA Corp (NASDAQ:NVDA) and Super Micro Computer Inc (NASDAQ:SMCI) have also seen significant stock price drops, contributing to broader tech sector unease.
Why It Matters: TSMC’s challenges reflect a broader chip industry trend. The company, a key ...