Why Is Taiwan Semiconductor Stock Gaining Wednesday?

Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) stock rose more than 3% Wednesday as a broader technology rally and fresh artificial intelligence investments lifted investor sentiment.

The Nasdaq gained 2.54%, while the S&P 500 climbed 1.16%.

TSMC Bets $1 Billion On AI Leaders

On Tuesday, TSMC’s board approved investments totaling up to $1 billion in AI developers Anthropic and OpenAI.

The chipmaker authorized up to $500 million to purchase Anthropic shares at its initial public offering price. It also approved an investment of up to $500 million in OpenAI preferred stock.

Anthropic plans to debut on the Nasdaq on Nov. 19 under the ticker ANT. Meanwhile, OpenAI has delayed its potential IPO until at least 2027.

The investments deepen TSMC’s exposure to the expanding AI industry.

October Revenue Surges Nearly 60%

TSMC also reported strong October sales on Tuesday, highlighting continued demand for advanced chips.

Revenue jumped 59.7% year over year to 586.89 billion New Taiwan dollars ($17.88 billion). Sales also increased 14.7% from September.

Additionally, the company plans to increase capital spending during 2026-2028 compared with the previous three years.

Technical Analysis

Despite Wednesday’s gains, TSMC faces resistance near its intermediate-term moving averages.

The stock trades above its 20-day simple moving average of $410.32 and its 200-day average of $402.43. However, it remains below its 50-day and 100-day averages of $430.65 and $426.04, respectively.

Its relative strength index of 49.37 signals neutral momentum.

Traders are watching $441 as resistance and $407.50 as near-term support.

TSM Price Action: Taiwan Semiconductor shares were up 3.45% at $410.14 at the time of publication on Wednesday, according to Benzinga Pro data.

Image via Shutterstock