Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) stock is leading chip stocks lower today, down 2% to trade at $411.01 this morning. The move came after the company reported second-quarter earnings that topped estimates and set records. Raised capital expenditures surpassed prior guidance and a revenue miss are weighing on the stock, however. A $100 billion Arizona investment to expand U.S. manufacturing is another talking point in focus.
It's also worth noting, that VanEck Semiconductor ETF (SMH), with TSM as its second-largest holding, is down 2.8% to trade at $574.45.
TSM is headed for its sixth-straight loss, its worst losing streak since February 2025. The shares have now taken a 14% trim off its June 30 all-time high of $479, though the 80-day moving average is stepping up as support. Year-to-date, TSM is up 36%.
Put traders have been moving in. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratios of 1.95 sits two percentage points from an annual high.
Today is more skewed toward calls. At last look, 56,000 calls have changed hands, volume that's triple the average intraday amount. The July 425 call is the most popular, while the August 440 put is also seeing notable attention.
