If you blinked last week, you might have missed the tech selloff. But if you're watching Taiwan Semiconductor (TSM) today, you're seeing a nice bounce-back. The chipmaker's stock is trading higher Monday afternoon, riding a wave of relief that's sweeping through the semiconductor sector.
So what happened? Last week, tech stocks took a hit after Broadcom Inc. (AVGO) reported earnings. Broadcom's numbers were solid enough, but the company didn't raise its long-term AI revenue outlook—it just reaffirmed it. That was enough to trigger profit-taking across AI-linked chip names, dragging the whole sector down.
Fast forward to Monday, and the mood has flipped. The Nasdaq 100 jumped 2.1% to 29,564.79 by midday, leading the major U.S. indices. Traders are rotating capital out of defensive sectors and back into high-growth technology names, giving the semiconductor complex a nice boost.
A Ceasefire Helps
The big catalyst for Monday's rally? Geopolitics. Reports emerged 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, and tech stocks were among the biggest beneficiaries.
TSM's Technical Picture
Zooming out, TSM's charts look pretty healthy. The stock is trading at $427.26, 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—shorter-term averages above longer-term ones—typically signals that buyers are in control of the broader trend.
The relative strength index (RSI) sits at 51.54, which is neutral territory. That means the stock isn't overbought or oversold—just cruising in the middle. And TSM still sports a bullish "golden cross" pattern, with the 50-day moving average above the 200-day moving average, a signal that first appeared back in June 2025.
With the stock trading near its 52-week high of $450.16 (reached earlier this month), investors are watching for either a breakout above that level or a period of consolidation. Technical support is seen around $385, close to the 50-day moving average.
Price Check: Taiwan Semiconductor shares were up 2.92% at $427.31 at the time of publication on Monday, according to market data.
