TSMC shares plunge 9.8% as Democratic sweep raises AI spending concerns

Taiwan Semiconductor Manufacturing Company's ADRs plunged 9.8% to $357.16 in morning trading following the Democratic Party's sweeping victory in the November 4 U.S. midterm elections, triggering investor concerns about regulatory risks to AI infrastructure spending. The Democratic win secured control of both congressional chambers and governorships in Texas and Georgia, which account for roughly one-third of planned U.S. AI data center investments. Evercore ISI analysts warned of negative sentiment for AI infrastructure stocks, while Wedbush's Dan Ives called the Texas result the biggest concern for tech investors. TSMC's monthly sales report due November 10 adds pressure, with a challenging $53.3 billion quarterly revenue hurdle ahead. The selloff spread across the semiconductor sector, with Micron, AMD, and Nvidia all falling alongside TSMC. The Philadelphia Semiconductor Index had already dropped 3.1% on election night, and technical selling below key moving averages accelerated losses. Broader markets offered no refuge, with the S&P 500 down 3.3% and Nasdaq down 4.8%, leaving TSMC's ADR about 26.8% below its 52-week high of $487.47.