What Is Going on With Taiwan Semiconductor Stock on Monday?

Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) stock rose almost 4% Monday as chip stocks rebounded and investors weighed reports that the chipmaker is considering an expansion into advanced memory production. The SPDR S&P 500 ETF Trust was up about 1.7%.

The potential move could broaden TSMC’s role in the AI hardware supply chain beyond its core logic-chip manufacturing business.

TSMC Weighs 3D DRAM Expansion

TSMC is evaluating plans to produce 3D DRAM at the request of NVIDIA Corp. (NASDAQ:NVDA), its largest customer, The Information reported on Friday.

The move would give TSMC exposure to another part of the AI hardware market at a time when demand for advanced memory remains elevated.

The contract chipmaker could either build new factories dedicated to advanced memory or acquire and convert an existing facility, Reuters reported Friday.

The timing of any production remains unclear.

Potential Move Broadens AI Exposure

The reported plans would place TSMC in competition with established memory suppliers including Samsung Electronics Co. Ltd. (OTC:SSNLF), SK Hynix Inc. (NASDAQ:SKHY) and Micron Technology Inc. (NASDAQ:MU).

For TSMC, the initiative would extend its involvement in AI infrastructure beyond manufacturing advanced logic chips for customers such as NVIDIA.

Technical Picture Remains Under Pressure

Despite Monday’s gain, TSM remains below several major moving averages.

The stock trades about 6% below its 20-day simple moving average (SMA), about 10% below its 50-day SMA and about 3% below its 200-day SMA.

The 20-day SMA also remains below the 50-day SMA, keeping the near-term technical trend under pressure.

Analyst Outlook

TSMC carries a Buy consensus rating with an average price forecast of $559.38.

Recent actions include Bernstein maintaining Outperform while raising its target to $600 on Nov. 4, Barclays maintaining Overweight while raising its target to $670 on Oct. 16, and DA Davidson maintaining Buy with a $500 target on Oct. 16.

ETF Exposure

TSMC carries a 9.32% weighting in the VanEck Semiconductor ETF, 6.28% in the Franklin Income Focus ETF and 7.32% in the Brown Advisory Flexible Equity ETF.

Those weightings leave the stock exposed to broader semiconductor and fund flows alongside company-specific developments.

Price Action

TSM Price Action: Taiwan Semiconductor shares were up 3.65% at $389.16 at the time of publication on Monday, according to Benzinga Pro data.

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