Taiwan Semiconductor Manufacturing Company experienced downward price movement driven primarily by short-term profit-taking following its latest sales update. Although the company announced record third-quarter revenue that surpassed both Wall Street estimates and its internal guidance, September monthly sales posted a minor sequential decline compared to August. Investors frequently utilize such high-profile monthly data releases as catalysts to lock in gains, particularly after an extended rally across semiconductor and artificial intelligence hardware equities.

Valuation considerations also contributed to the selling pressure. Having surged significantly over recent quarters on the back of aggressive demand for advanced nodes and AI…