Taiwan Semiconductor Manufacturing Company (TSMC) shares fell 9.8 percent, driving the Taiex Index down nine percent. The world's largest contract chipmaker's sharp decline signals a re-rating of the semiconductor sector's fundamental outlook.
Nvidia shares dropped 9.3 percent to $181.60, reflecting investor concerns over future demand or pricing power for its market-leading AI accelerators. Apple, a key TSMC client for iPhone and Mac processors, fell 1.5 percent to $344.17.
The magnitude of TSMC's drop points to specific sector headwinds: either a slowdown in enterprise AI spending or a reassessment of consumer electronics demand. A decline of this size typically precedes broader adjustments across the semiconductor value chain.
The broader U.S. equity market sold off sharply. The Nasdaq Composite Index fell 5.5 percent to $24,315, while the S&P 500 dropped 4.4 percent to $7,354. Investors are repricing risk across growth stocks with high valuations tied to technology cycles and global supply chain stability.
