Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) stock rose nearly 4% in Monday’s premarket trading as investors returned to technology stocks and chipmakers. Nasdaq futures climbed 2.04%, while S&P 500 futures gained 1.21%.
The rally came as U.S. stock futures advanced following President Donald Trump’s announcement of a peace agreement with Iran, which sent crude oil prices lower and boosted sentiment toward growth stocks.
Semiconductor names were among the strongest performers in premarket trading as investors added exposure to technology leaders.
Taiwan Semiconductor is trading near its 52-week high, making it a key beneficiary of improving market sentiment. With futures advancing across major indexes, investors continued to favor large-cap technology and artificial intelligence-linked stocks.
Technical Setup Remains Bullish
The stock continues to trade in a strong uptrend. Shares remain about 4.8% above their 20-day simple moving average of $418.61, 10.1% above their 50-day moving average of $398.22, and 32.5% above their 200-day moving average of $331.02.
The moving-average structure remains supportive, with the 20-day average above the 50-day average and the 50-day average above the 200-day average. This pattern reflects a sustained long-term uptrend.
Momentum indicators also remain balanced. The relative strength index stands at 54.14, suggesting the stock is neither overbought nor oversold and may have room for additional gains.
Investors are closely watching the $450 area, which sits near the stock’s 52-week high of $450.16. A decisive move above that level could signal a breakout. On the downside, support is located near $385, an area that previously attracted buyers.
Taiwan Minister Defends Taiwan Semiconductor Amid U.S. Patent Dispute
Separately, Taiwan’s Minister of Economic Affairs, Kung Ming-hsin, recently defended Taiwan Semiconductor after reports linked the company to a U.S. patent infringement lawsuit, The Taipei Times reported.
According to Axios, several U.S. lawmakers urged the U.S. International Trade Commission to ban imports of Taiwan Semiconductor-made chips if they are found to violate U.S. patents. A preliminary ruling is expected this month, with a final decision potentially coming in October.
Kung said the ministry contacted Taiwan Semiconductor about the case, but the company declined to comment because the litigation is ongoing. He added that the government remains highly confident in Taiwanese companies’ compliance with patent regulations and is “even more confident” after communicating with Taiwan Semiconductor.
Industry leaders at Taiwan’s Economic and Industrial Development Advisory Conference also called for greater power capacity, more computing resources for AI development, and measures to address shortages of research and development talent. Participants also raised concerns about stricter environmental regulations and potential cuts to government spending on sectors such as drones.
Earnings And Analyst Outlook
The next major catalyst is Taiwan Semiconductor’s expected earnings report on July 16.
Wall Street expects earnings of $3.69 per share, up from $2.47 a year earlier. Revenue is projected to reach $39.76 billion, compared with $30.07 billion in the prior-year period.
The stock carries a consensus Buy rating with an average analyst price forecast of $442.50. Recent analyst actions include:
- Barclays maintained an Overweight rating and raised its price forecast to $470 on April 22.
- DA Davidson maintained a Buy rating and a $450 price forecast on April 17.
- Needham maintained a Buy rating and raised its price forecast to $480 on April 16.
Price Action
TSM Stock Price Activity: Taiwan Semiconductor shares were up 3.56% at $439.01 during premarket trading on Monday, according to Benzinga Pro data.
Photo by Jack Hong via Shutterstock
