TMSC stock has been falling as capex concerns weigh on further upside for the industry due to high spending to accommodate new orders.What TSMC’s Earnings Mean for NVTSTaiwan Semiconductor reported second-quarter net income of NT$706.56 billion (about $22 billion), topping estimates for NT$632.64 billion, yet the stock still fell in premarket trading.TSMC also guided third-quarter 2026 revenue to $44.6 billion to $45.8 billion, with gross margin seen at 65% to 67% and operating margin at 56% to 58%.With TSMC saying 7-nanometer and below made up 77% of total wafer revenue, the market’s reaction is being read as "good news priced in," which can pressure higher-beta chip names like NVTS when futures are already pointing lower.Critical Levels to Watch for NVTS StockFrom a longer-term trend perspective, NVTS is still up 87.48% over the past 12 months, but the current setup is in a clear drawdown phase versus its key moving averages. At $11.04, the stock is trading 33.3% below its 20-day SMA, 46.5% below its 50-day SMA, and 12.2% below its 200-day SMA—classic "below trend" positioning that often keeps rallies choppy until price can reclaim at least the 200-day area.Momentum also leans defensive: MACD is below its signal line and the histogram is negative, which typically means upside pressure is fading versus the prior upswing unless buyers can force a reset back above that baseline. Structurally, the 20-day SMA sitting below the 50-day SMA reinforces the near-term bearish posture, even though the 50-day SMA remains above the 200-day SMA—suggesting the bigger-picture trend has not fully broken down.