Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) may raise prices for its 3nm foundry services by as much as 15% in the second half of 2026 as demand continues to exceed supply.
Taiwan Semiconductor expanded its monthly 3nm production capacity to 160,000-175,000 wafers in the second quarter. Despite the increase, strong demand continues to outstrip supply, leaving order backlogs in place, TechNode reported Friday, citing supply chain sources.
The report said AI-driven demand is growing faster than expected, keeping advanced-node capacity tight despite ongoing expansion efforts at Taiwan Semiconductor’s Fab 18 complex in Taiwan’s Southern Taiwan Science Park.
The shortage of leading-edge manufacturing capacity remains one of the semiconductor industry’s most significant supply chain bottlenecks.
Stock Performance And Technical Analysis
Taiwan Semiconductor stock shares edged higher in premarket trading Friday as investors continued to favor large-cap technology stocks amid a constructive broader market backdrop. Nasdaq futures rose about 0.5%, while S&P 500 futures gained 0.5%.
Investors have continued to buy pullbacks, helping the stock maintain its position above key technical levels.
The stock remains in a strong long-term uptrend, gaining 95.5% over the past 12 months. Shares trade roughly 1.2% above the 20-day simple moving average of $418.30 and 28.3% above the 200-day moving average of $330.10.
The technical setup also remains favorable. The 20-day moving average is above the 50-day moving average, while the bullish golden cross formed in June 2025 remains in place, reinforcing the longer-term trend.
Momentum indicators suggest the rally is not overstretched. The relative strength index, or RSI, stands at 53.18, a neutral reading that indicates consolidation rather than excessive buying pressure.
Key resistance sits near $450, an area that aligns with the stock’s 52-week high zone. Support is near $385, where buyers previously stepped in and where the 50-day trend area provides additional backing.
Earnings And Analyst Outlook
The next major catalyst is the company’s expected earnings report on July 16.
Wall Street expects earnings per share of $3.69, 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.
TSM trades at roughly 36.2 times earnings, reflecting a premium valuation supported by strong growth expectations.
Analysts remain broadly bullish. Recent forecasts include Barclays at $470, DA Davidson at $450, and Needham at $480. The consensus analyst forecast stands at $442.50.
Taiwan Semiconductor Price Action
TSM Stock Price Activity: Taiwan Semiconductor shares were up 0.27% at $422.20 during premarket trading on Friday, according to Benzinga Pro data.
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