Taiwan Semiconductor $TSM Dark Pool Selling On China Chip Ban

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Dark pool trades occurred in Taiwan Semiconductor $TSM on October 24, 2022. The dark pool trading data seems to suggest that the orders were sell orders because of how $TSM stock fell immediately following the prints hitting the tape.

Dark Pool Trading In Taiwan Semiconductor $TSM Stock

Taiwan Semiconductor stock chart on October 24, 2022, with dark pool trades shown in orange bars with a table to the right that has the text TIME SYMBOL MESSAGE PRICE 7:18:44 TSM 196,815 DARK BLOCK $11M 1.41% AvgVol $60.80 6:59:54 TSM 484,863 BLOCK $29M 3.47% AvgVol $61.00 6:38:28 TSM 100,000 DARK ISO BB $6.1M 0.72% AvgVol $61.40 6:38:12 TSM 100,000 DARK BLOCK $6.1M 0.72% AvgVol $61.40 6:36:55 TSM 250,000 DARK BLOCK $15M 1.79% AvgVol $60.58

A narrative emerges that the dark pool selling may be institutional investors reducing long positions because of Taiwan Semiconductor halting work for the Chinese firm Biren Technology.

Big Bullish Option Bet

Somebody made a large call options bet on October 24, 2022, with a total value of $1.27 million.

A table with text that reads TIME SYMBOL EXP STRIKE C/P SPOT DETAILS TYPE VALUE 6:59:21 TSM 01/20/23 65 CALL 61.18 3530@3.599_A SWEEP $1.27M

Make sure to review this lesson on option flow so that you understand the image above.

TSMC halts work for Chinese startup Biren Technology, Bloomberg reports

On October 24, 2022, TSMC (TSM) has suspended production of advanced silicon for Chinese startup Biren Technology to ensure compliance with U.S. regulations, Bloomberg’s Debby Wu reports. Biren Technology competes on graphics chips with Nvidia (NVDA) and AMD (AMD). TSMC has contacted the U.S. to determine whether Biren’s products meet the U.S. threshold for restrictions. Source: https://www.bloomberg.com/news/articles/2022-10-22/tsmc-said-to-suspend-work-for-chinese-chip-startup-amid-us-curbs

Taiwan Semiconductor mulls expanding production capacity in Japan, WSJ reports

Taiwan Semiconductor Manufacturing Co. is considering the expansion of production capacity in Japan in an effort to cut geopolitical risk, the Wall Street Journal’s Yang Jie reports, citing people familiar with the matter. The Japanese government has indicated it would like the chip maker to expand in the country beyond a plant already under construction and TSMC is evaluating the feasibility. Source: https://www.wsj.com/articles/chip-maker-tsmc-weighs-expansion-in-japan-to-reduce-geopolitical-risk-11666170453

Taiwan Semiconductor downgraded to Buy from Conviction Buy at Goldman Sachs

On October 13, 2022, Goldman Sachs analyst Bruce Lu downgraded Taiwan Semiconductor to Buy from Conviction Buy with a price target of $89, down from $126. Bruce Lu thinks that the tone of the company’s management at its analyst meeting has turned more conservative, as it has acknowledged that it sees an impact from demand weakness, especially for its N7 nodes. TSMC management has also guided down 2022 capex to $36B vs. nearly $40B, partially due to demand uncertainties.

Taiwan Semiconductor Reports Q3 2022

On October 13, 2022, Taiwan Semiconductor reported Q3 revenue of $20.23B versus the consensus estimate of $19.96B. The company reported Q3 EPS of $1.79 versus the consensus estimate of $1.41. In the third quarter, shipments of 5-nanometer accounted for 28% of total wafer revenue; 7-nanometer accounted for 26%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 54% of total wafer revenue.

“Our third quarter business was supported by strong demand for our industry-leading 5nm technologies,” said Wendell Huang, VP and CFO of TSMC.

Taiwan’s clock is ticking once China’s Xi enters third term, says Vivek Ramaswamy

Taiwan Semiconductor $TSM Stock Technical Analysis

Taiwan Semiconductor $TSM stock is in a technical strong downtrend. Long-term indicators suggest a continuation of the downtrend. However, short-term indicators suggest $TSM stock is in highly oversold territory, so a bounce or trend reversal is possible.

Taiwan Semiconductor stock chart on October 24, 2022, in a downtrend channel with a neutral MACD and negative money flow.
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