TSMC's blockbuster results will be a welcome surprise to investors after ASML's earnings sent semiconductor stocks tumbling earlier this week.

Taiwan Semiconductor Manufacturing stock was rising after the company posted a big jump in profit and sales for the third quarter, beating analysts’ estimates. It’s a sign of strong demand for artificial-intelligence chips.

At $730 per share, ASML stock looks reasonably valued at 27 times forward earnings. However, it could remain under pressure until it overcomes its near-term headwinds and its bookings growth accelerates again. So if you already own ASML stock, it's smarter to simply hold it and ride out the cyclical downturn instead of selling it.

Traders exited Nasdaq-100 futures at the fastest pace this year on Tuesday as shares of chip makers slid following ASML Holding NV’s surprise announcement lowering its 2025 guidance.Open interest — or the size of outstanding positions — in the contracts sank by $5.

Global chip stocks continued to slump after ASML warned the recovery for some areas of the industry would be slower than expected, raising fears among investors of a prolonged downturn in demand.