TSM Stock Slips Premarket Today — CEO Reportedly Says AI Chip Shortage Isn’t Ending Anytime Soon

TSMC shares dipped premarket after reports surfaced that CEO C.C. Wei indicated the AI chip shortage is not ending soon. The company posted FY2024 revenue of approximately $2.9 trillion NTD (+33.9% YoY), with gross margins of 56.1% and net margins of 40.0%, reflecting extraordinary pricing leverage in its advanced node business.

The CEO's comments touch directly on TSMC's central position in the AI supply chain. As the sole high-volume manufacturer of leading-edge chips for NVIDIA, Apple, AMD, and others, any sustained shortage narrative keeps TSMC's fabs operating at peak utilization and reinforces its ability to command premium wafer prices — a dynamic that drove that 33.9% revenue surge.

The premarket dip is arguably counterintuitive: a prolonged shortage is a TSMC revenue tailwind, not a headwind. The selloff may reflect concern that end-demand visibility is limited, or that shortage conditions signal ecosystem stress rather than pure pricing upside. Bears may also point to geopolitical overhang around Taiwan and any capex cycle risk.

What to watch: whether the shortage commentary gets confirmed in an official investor forum, how NVIDIA and AMD react (shortage supports their own premium pricing), and whether TSMC revises CoWoS/advanced packaging capacity guidance upward at the next earnings call. The FY2024 financial profile — 56% gross margins, $44.67 diluted EPS — gives TSMC significant fundamental support even in a risk-off tape.