Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) stock is trading higher on Monday afternoon. The stock is riding a wave of a broader semiconductor sector recovery following a sharp selloff last week.
Broader Semiconductor Sector Rebounds
Chip stocks are bouncing back after last week’s tech-led rout, which came in the wake of Broadcom Inc.’s (NASDAQ:AVGO) quarterly earnings report.
While Broadcom posted solid earnings, the company reaffirmed rather than raised its long-term AI semiconductor revenue outlook, prompting profit-taking across AI-linked chip names and weighing on the sector.
By midday Monday, the tech-heavy Nasdaq 100 jumped 2.1% to 29,564.79, leading the major U.S. indices. Traders are rotating capital out of defensive sectors back into high-growth technology names, boosting the semiconductor complex.
Macro Relief and Geopolitical Ceasefire
On Monday, market sentiment improved significantly after reports of an immediate ceasefire between Israel and Iran. President Donald Trump posted early Monday that both sides are looking for an immediate truce.
The Iranian armed forces confirmed they ended military operations, while Israeli Prime Minister Benjamin Netanyahu stated Israel is “holding fire for now.” This de-escalation sparked a broad relief rally across equity markets.
Technical Picture Remains Bullish
TSM continues to trade in a strong long-term uptrend. The stock is about 3.1% above its 20-day simple moving average of $414.73, 9.9% above its 50-day average of $389.03, and 31.1% above its 200-day average of $326.30. That alignment typically signals that buyers remain in control of the broader trend.
The relative strength index stands at 51.54, indicating neutral momentum and suggesting the shares are not significantly overbought or oversold. The stock also maintains a bullish “golden cross” pattern, with the 50-day moving average above the 200-day moving average, a signal that first emerged in June 2025.
With the stock trading at $427.26, close to its 52-week high of $450.16 reached in June, investors are watching for either a breakout or a period of consolidation. Technical support is seen near $385, close to the 50-day moving average.
TSM Stock Price Activity: Taiwan Semiconductor shares were up 2.92% at $427.31 at the time of publication on Monday, according to Benzinga Pro data.
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