TSMC Shares Rise 3% as Asia Tech Weakens

TSMC closed at 482.30 on Oct. 6, near its recent highs and above both its 50-day and 200-day moving averages, even after an extremely overbought technical run that left its RSI at 88. That combination points to a stock that remains in favor, but also one where the market has already priced in a large part of the near-term optimism. The broader Taiwan-focused EWT exchange-traded fund also held up, finishing at 117.61, while South Korea’s EWY slipped to 186.40, reflecting a more selective appetite for Asian tech exposure.

The divergence aligns with a broader semiconductor bid. U.S. chip stocks have been supported by renewed confidence in AI spending after Micron’s stronger-than-expected results, and analysts have argued the sector still screens cheaply relative to the durability of the earnings cycle. That backdrop has kept demand elevated for leading foundry, memory and equipment names even as investors remain wary of macro risks, rate pressure and uneven growth in parts of Asia.

For investors, the key question is whether this is the start of a fresh leg higher in the chip cycle or simply another crowded surge in a market already rich in expectations. TSMC’s strength says the bull case still has traction: AI demand remains real, supply discipline has held, and capital is still flowing to companies with the cleanest exposure to high-end computing. The bear case is that valuations are no longer modest, technical indicators are stretched, and any disappointment in AI orders, export controls or end-demand could trigger a sharper de-rating.

The next catalyst is likely to be earnings guidance and commentary on advanced-node demand, packaging capacity and customer spending into 2027. If TSMC continues to outperform even when the wider region retreats, it would reinforce the idea that investors are treating it less as a proxy for Taiwan and more as a global AI infrastructure winner.