Why Taiwan Semiconductor Manufacturing Stock Is Sinking Today

Taiwan Semiconductor Manufacturing (NYSE: TSM) stock is declining in Monday's trading following potentially significant news about competitive dynamics in the semiconductor industry. TSMC's valuation is moving lower today following news that Chinese tech giant Huawei is testing an artificial intelligence (AI) chip that could rival Nvidia's top semiconductors. Nvidia relies on TSMC to fabricate its semiconductor designs, and both companies occupy key positions in the broader AI hardware and tech race between the U.S. and China.