Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) stock climbed nearly 4% in Thursday's premarket session after Micron Technology Inc. (MU) delivered stronger-than-expected earnings and upbeat guidance, reinforcing optimism that AI infrastructure spending remains robust.

The broader market also supported sentiment, with S&P 500 futures rising about 0.7%.

AI Demand Boosts Chip Supply Chain

Micron reported fiscal third-quarter adjusted earnings of $25.11 per share on revenue of $41.46 billion. The company also forecast fiscal fourth-quarter adjusted earnings of about $31 per share on roughly $50 billion in revenue.

The results strengthened investor confidence that AI infrastructure demand continues to support pricing power across the semiconductor industry.

As the world's largest dedicated semiconductor foundry, controlling roughly 70% of the global foundry market, Taiwan Semiconductor is widely viewed as a key beneficiary of the AI infrastructure buildout, with Micron's bullish memory indicators reinforcing that outlook.

With its unparalleled production scale and leading-edge process technologies, Taiwan Semiconductor remains firmly anchored at the absolute center of the global AI infrastructure super-cycle.

Taiwan Semiconductor Technical Picture Remains Bullish

TSM continues to trade comfortably above its key moving averages. The stock sits 5.3% above its 20-day simple moving average of $433.00, 11.1% above its 50-day SMA of $410.40 and 34.8% above its 200-day SMA of $338.32. The bullish alignment of those averages suggests the longer-term uptrend remains intact.

Momentum also remains healthy. The relative strength index stands at 54.55, indicating neutral momentum rather than overbought conditions. That suggests the stock still has room to move higher after its strong 12-month rally.

TSM is trading near the upper end of its 52-week range of $213.88 to $476.79. Traders are watching the June high and the 52-week high as the next resistance area. On the downside, support is near $405.50, where buyers previously returned to the stock.

Earnings And Analyst Outlook

Wall Street's next major catalyst is TSM's estimated July 16, 2026, earnings report. Analysts expect earnings of $3.73 per share, up from $2.47 a year earlier, on revenue of $39.76 billion versus $30.07 billion last year.

The stock trades at about 38 times earnings, reflecting its premium valuation. Analysts maintain a consensus Buy rating with an average price forecast of $489.17. Recent analyst actions include:

• Bank of America Securities raised its price forecast to $590 on June 24.
• Susquehanna raised its price forecast to $575 on June 22.
• Barclays maintained an Overweight rating and raised its price forecast to $470 on April 22.

Taiwan Semiconductor Edge Rankings

Taiwan Semiconductor scores highly across most Edge categories. Momentum stands at 92.12, Quality at 97.65 and Growth at 92.68, highlighting the company's strong market position and earnings profile. Value remains weaker at 21.18, reflecting the stock's premium valuation.

The combination points to a high-quality growth company with strong momentum. However, investors may find better risk-reward opportunities during pullbacks rather than chasing shares near recent highs.

ETF Exposure

TSM represents a significant holding in several exchange-traded funds, including Harbor International Compounders ETF (OSEA) at 7.10%, Pacific NoS Global EM Equity Active ETF (GEME) at 9.98% and Nicholas Crypto Income ETF (BLOX) at 8.20%. Large fund inflows or outflows could influence demand for the stock.

Taiwan Semiconductor Price Action

TSM Stock Price Activity: Taiwan Semiconductor shares were up 3.59% at $456.66 during premarket trading on Thursday.